Table 6. Costs of Broiler Assembly (cents per pound) for Six Firm Sizes 



at Three Density Levels. 



Firm and Annual Volume (million pounds) 



A (4.15) B (12.45) C (24.90) D (34.58) E (51.87) 



F (69.16) 



Total 



.881 



.955 



1.129 



1.255 



5,000 



Pound Density Level 



Total 



.637 



.647 



.727 



.783 



.854 



.919 



25,000 Pound Density Level 



* Because of the 10-hour restriction on truck driver, pickup labor, and foremen 

 work day. Bands V and VI cannot be reached at the 1,()00 pound density level, so 

 Firms E and F cannot exist. 



The cost per pound for assembly at the low density level of 1,000 

 pounds per square mile per year rises steeply as firm size increases.'^ 

 The cost per pound for assembly at the 5,000 pound density level rises 

 less steeply. Cost increases from 0.637 cents to 0.919 cents per pound, an 

 increase of 0.282 cents or about 44 percent with an increase in size of 

 firm from 4.15 million pounds to 69.16 million pounds annually. With 

 the same change in size of firm the cost of assembly at the 25,000 pound 

 per sqitare mile per year density level increases only by 0.137 cents 

 per pound or 27 percent. 



- Within the restrictions of this study no assembly firm can have a size greater 

 than about 45 million pounds per year at the 1,000 pound density level. This is due to 

 the physical impossibility of covering distances required to assemble poultry for a 

 plant of larger size. In this study Firm D (34.58 million pounds per year) was the 

 largest one at the 1,000 pound per square mile per year density level. 



29 



