TABLE 2.--ESTIMATED VARIABLE AND FIXED COSTS FOR FILLING
 100- AND 50-POUND BURLAP BAGS ACCORDING TO


AND WEIGHING
METHODS


 Method A Method B Method A Method B
 Item 4 3 8 6
 stations stations stations stations


 Variable Costs

Cost per hour:
 Labor $ 4.00 $ 6.00 $ 8.00 $12.00
 Electricity .02 .02 .03 .03
 Repairs .16 .10 .29 .17
 Total $ 4.18 $ 6.12 $ 8.32 $12.20

Cost per hundredweight
 (cents):
 100-pound bag 1.34 1.91 1.33 1.90
 50-pound bag 1.94 2.55 1.93 2.54


 Fixed Costs

Replacement costs:
 Bagging table $ 1748 $ 1448 $ 2989 $ 2389
 Scales 1360 510 2720 1020
 Total $ 3108 $ 1958 $ 5709 $ 3409

Annual fixed costs: a
 Bagging table $ 231 $ 191 $ 395 $ 315
 Scales 180 67 359 135
 Total $ 411 $ 258 $ 754 $ 450


The total
taxes, 1.0;


 aComputed as 13.2 percent of replacement costs.
percentage is comprised as follows: depreciation, 6.7;
insurance, 1.0; interest, 3.0; and fixed repairs, 1.5.