3558 



ARKANSAS- MISSOURI BORDER LOCATION 



Chapter 28 



TEXAS- LOUISIANA BORDER LOCATION 



10 20 30 40 



WOOD COST ($/ODT) 



M 146 502, Ml 46 499 

 Figure 28-31. — Estimated production cost (PC) of y2-inch-thick structural flakeboard at 

 two locations versus wood cost (x) per ovendry ton. Production cost, as here used, 

 includes the costs of raw materials (wood, resin, and wax), manufacturing, selling, 

 overhead, discounts, commissions, (5, 3 and 2 percent), and a profit on the entire 

 capital requirement sufficient to yield about 15 percent return after state and federal 

 taxes. Single data points indicate a 1976 wood cost estimate, 60 percent dense 

 hardwood/40 percent soft hardwood or softwood. Dashed line indicates probable 

 fob mill price obtainable in primary and extended markets, based on average 1977 

 plywood prices (tables 28-7, 8 and 9) and December 1977 rate freight rates. (Drawing 

 after Koch 1978.) 



