Table 21. Summary of Feed Distribution for Six Firms 

 Distributing Feed at Three Density Levels 



* Figures across are tons distributed annually. 

 ** Firm F cannot distribute at this density level. (To distribute at this density 

 level requires changes in the restriction on overtime.) 



For the five firms able to distribute feed at the lowest density level 

 considered, total annual cost increases from $20,295 for Firm A to 

 $473,178 for Firm E. Average cost increases continuously with increasing 

 volume from $3.74 for Firm A to $6.96 a ton for Firm E. 



All six firm sizes can distribute feed at the intermediate density 

 level. Total annual cost increases from $13,268 for Firm A to $360,932 

 for Firm F. Average cost also increases continuously with increasing 

 volume from $2.44 for Firm A to $3.98 a ton for Firm F. 



Distributing feed at the highest density level results in annual costs 

 increasing from $10,395 for Firm A to $201,755 for Firm F. However, 

 average cost decreases from $1.91 a ton for Firm A to $1.72 for Firm B 

 and increases continuously with further increases in volume to $2.23 a 

 ton for Firm F. 



The relationship between average cost and volume at each density 

 level is shown in Figure 6. The relationship between average cost and 

 density for each of the six firms is illustrated in Figure 7. 



45 



