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Chapter 28 



Table 28-8. — Mill locations and their associated markets 



PRODUCTION COST 



Total mill price must include all production costs, the latter defined for the 

 purposes of this analysis as including the costs of raw material (wood, resin, and 

 wax), manufacturing, selling, overhead, discounts, commissions, and a profit 

 on the entire capital requirement sufficient to yield about 1 5 percent return after 

 state and Federal taxes. 



These production costs vary according to plant location, plant capacity and 

 form of wood entering the plant (i.e. , roundwood requiring debarking or residu- 

 al bark-free chips or flakes residual from other manufacturing operations). The 

 relationships among these variables are mathematically expressed in table 28-10 

 and illustrated in figures 28-31 and 28-32. 



