included. If interest at 5 percent were included on the book value of the operator's

capital it would amount to .44 cents per box picked and hauled for the 22 firms from

whom capital investment was obtained.


 Variation in Cost Between Firms

 Total cost varied rather widely between firms for providing the same service. These

variations in total costs for picking and hauling,1956-57, are shown in Tables 4, 5, and 6

for citrus dealers and packinghouses combined. Not enough is known about the individual

firms' operations to provide much information about reasons for costs being high or low.

The data do not show any consistent relationship between volume of fruit handled and level of

costs. Costs at first seem to decrease with increasing volume but then tend to stabilize or

even increase again. In each volume group there is a wide range of costs for both picking

fruit and for haul ing, indicating the influence of fietors other than volume. For hauling,

the average distance hauled and the idle capacity of the equipment owned doubtless affect

the overall season hauling cost per box. For picking, costs cannot decrease beyond a

certain point because of the large proportion of labor costs, some of which are piece

rates and do not fluctuate with volume picked. Firms with very low volumes--too low

to efficiently utilize one crew--had very high picking costs. Picking costs in some of the

largest operations also were higher than average.

 Management decisions probably affect citrus picking and hauling costs to a con-

siderable extent. The operation of picking and hauling fruit is only one segment of the

total business operation, whether the firm be a citrus dealer, packinghouse, or processor.

Obtaining a large and continuous volume of fruit may have advantages to the firm that