COST OF PRODUCING APPLES IN WENATCHEE VALLEY, WASH. 33 



Labels are put on the boxes of the extra fancy and fancy grades. 

 No accurate information as to the percentage of extra fancy and 

 fancy fruit was obtained . The growers estimated approximately 70 

 per cent. The price of high-grade labels does not vary much if 

 purchased in large lots. In some instances the fruit is labeled before 

 delivery to an association or shipping point. When the labels are 

 furnished and applied by the association, a charge of 1 cent per box is 

 usually made. The label cost as a whole appears under material 

 costs, for it was difficult to determine the time required for labeling. 

 Other material costs are shown in Table XXVII. These costs are 

 $103.71 per acre, amounting to $0.1749 per box, or 22.40 per cent 

 of the total box costs. 



Table XXVII. — Material costs in 1914 {87 ranches). 





Item. 



Cost per 

 acre. 



Cost per 

 box. 



Box shooks 



$62. 27 

 1.48 

 16.82 

 5.93 

 8.41 

 4.74 

 3.46 

 .60 



SO. 1050 



Nails 



' .0025 



Paper 



.0284 



Labels 1 



.01 



Lime-sulphur 



.0142 





. ooso 



Manure 



.0058 



Gasoline and oil 



.0010 









Total 



103. 71 



.1749 







i Includes putting on of the labels. 



FIXED COSTS. 



The term " fixed costs" includes all costs other than labor and 

 material costs that enter into and make up the total cost of produc- 

 tion. Under this heading come such items as taxes, insurance, and 

 machinery depreciation. These fixed costs are shown in Table 

 XXVIII. The tax and insurance charges per acre, other than water 

 tax, on the bearing apple orchard are found by prorating the total 

 tax and insurance on the entire ranch in the proportion that the apple 

 orchard is of the total investment. 



The water tax of $1.69 per acre is the average of the rates in force 

 on the various ditches, ranging from $1.50 to $3.50 per acre. This 

 rate varies from year to year, depending upon the ditch. 



The interest on investment is figured at the prevailing rate (8 per 

 cent) on the estimated value of the bearing apple orchard land as 

 given by the rancher at the time this investigation was made. 



The charge for use of equipment is computed by considering the 

 interest 8 per cent, depreciation 11 per cent, taxes 1 per cent, and 

 repairs 5 per cent, which amounts to an annual charge of 25 per cent 

 on the total equipment investment. 





