Table 20. Miscellaneous Costs for Six Firms Distributing Feed 



at Three Density Levels 



* Figures across are tons distributed annually. 

 ■* Firm F cannot operate at this density level. 



The ownership cost includes depreciation, interest on investment, 

 taxes, maintenance and repair, and insurance. Annual depreciation is 

 figured by the straight-line method and is four percent of the initial in- 

 vestment for the garage and office and ten percent of the initial invc>t- 

 ment for office equipment. The annual interest charge is three percent of 

 the initial investment. Annual taxes are $25 per thousand on half of the 

 new investment value. Annual insurance, maintenance and repair are 

 each assumed to be one percent of the initial investment. 



Utility and telephone costs are estimated from information supplied 

 by firms. Supplies are a constant unit cost and are assumed to be two 

 cents per ton of feed distributed. 



5. Total Distribution Cost — Table 21 gives the total annual and 

 average per ton feed distribution costs for each firm operating at three 

 density levels. For each situation, truck costs constitute approximately 

 half of the total cost. Drivers' wages are the second largest cost item and 

 vary from about 25 to 35 percent of the total. The administrative and 

 miscellaneous costs constitute the balance. 



44 



