On an average, topping of utility grade fruit was performed in this 

 manner at a rate of 1.04 man-minutes per box. At this rate one topper can 

 handle all the boxes to be topped with time to spare. Two workers—one tend- 

 ing the automatic box fillers, and the other topping boxes-- took care of all 

 cull and utility grade apples at a labor cost of 7.8 cents per box (258 boxes 

 filled, at $20 per day for 2 workers). 



Cost of Equipment 



Items of equipment which make up the experimental line have already been 

 described, and labor costs associated with this line were presented in the 

 previous section. To the labor costs must be added those of owning and opera- 

 ting the packing line if a total cost picture for this equipment is to be 

 shown. 



Table 1 gives the approximate cost of owning and operating each item of 

 equipment used in the experimental packing line illustrated in figure 1. 

 Initial cost includes delivery to a central New England area, plus an 

 installation cost of 5 percent of the purchase cost. 



Depreciation was computed on a straightline basis — initial cost divided 

 by the number of years of expected life. Interest on money invested was set 

 at 5 percent of the average investment, and insurance and taxes at 4 percent 

 of the initial cost. An electric power rate of 2.7 cents per kilowatt hour 

 was used, with the line operating 450 hours yearly. Annual cost for main- 

 taining the equipment was based on experience coupled with recommendations of 

 equipment manufacturers. Breaking down cost figures in this way permits a 

 complete analysis of ownership and operating costs for each item of equipment. 

 The complete line, including 6 packing stands, 7 power shunts, and 4 automatic 

 box fillers cost $3,964.87 per year, when 50,000 boxes were dumped each year, 

 at a rate of 900 boxes per day. At this rate, the cost of owning and operating 

 such a line was 7.9 cents per box dumped. 



This same line, with no additional equipment, has a capacity considerably 

 greater than 50,000 boxes dumped per year, or 900 boxes per day. It could, in 

 fact, easily handle 150,000 orchard-run boxes, at a daily dumping rate of 

 1,200 boxes. Using the line at this rate would increase its annual ownership 

 and operating cost from $3,964.87 to $5,417.45 or 37 percent (table 2). This 

 is because the equipment would last fewer years and more power and maintenance 

 would be required. While the total annual equipment cost is greater for this 

 higher volume, the unit cost is considerably less--only 3.6 cents per box 

 dumped. This is 4.3 cents less per box than when only 50,000 boxes were 

 dumped yearly. This comparison illustrates the importance of using equipment 

 up to its capacity, so that its cost is spread over the greatest possible 

 number of boxes. 



Combined Labor and Equipment Costs 



The cost of labor for packing 50,000 boxes dumped annually with the 

 experimental line was 14.4 cents for each orchard-run box dumped, and the cost 



- 14 - 



