220 COST OF MANUFACTURE 



Under pre-war conditions the freight and other transporta- 

 tion ranged from about 10 to 25 cents per case averaging about 

 12 to 15 cents. January 1, 1920, the freight and other transpor- 

 tation charge? would average 35 cents per case. 



Before the war the investment in factory, equipment and 

 operating expense for a plant with a capacity of about 500 cases 

 per day amounted to about $75,000, placing the interest and 

 insurance at about 3 cents per case. January 1, 1920, a factory 

 of similar capacity would involve an investment in building, 

 equipment and operating expense of about $175,000, placing the 

 interest and insurance at about 7 cents per case. 



The selling expense varies widely ranging from less than 

 10 cents to 20 cents per case. 



The following tabulated summary may serve to bring out 

 the approximate relative expense per case of sweetened con- 

 densed milk and evaporated milk more clearly : 



Sweetened Condensed Milk. 



Cost per case of forty-eight cans. These cans weigh 14 ounces 



net per can or 42 pounds net per case. They are known in the 



trade as 14 ounce cans. 



1913. 1920. 



105 Ibs. milk (concentration Jan. 1. 



2.5 :1) @ $1.50 $1.57 @ $ 3.60 $3.78 



16.8 Ibs. sugar (16 Ibs. per 100) @ 5.00 .84 @ 15.75 2.64 



Tin cans (sanitary) 45 .88 



Boxes (wooden) 075 .23 



Labels 040 .05 



Coal 045 .09 



Factory labor 15 .23 



Administration expense 07 .10 



Freight 14 .35 



Selling expense 10 .12 



Interest and insurance on investment 



and on operating capital . .03 .07 



Total cost per case $3.51 $8.54 



