for the two methods at an annual volume of about 25,000 hundredweights,

assuming the use of the rate of output of just over 300 hundredweights

per hour. At an output of over 600 hundredweights per hour, costs are

equal at a higher point--just over 50,000 hundredweights per season. In

each case, beyond the points of equal costs, Method A has an increasing

cost advantage.

 Paper bags.--Data in Table 5 show fixed and variable equipment and

labor costs for filling and weighing 50-pound paper bags by both methods.

The largest variable cost item in both cases is labor. Variable costs are

0.97 cents per bag for Method A, but 1.56 cents for Method B. Total fixed

costs are about $350 and $650 for the four and eight stations, respectively,

in Method A. Fixed costs for Method B are lower than for Method A.

 Total costs per season, combining fixed and variable costs, are

shown in Table 6. At both rates of output Method B has lower costs at the

lower total season volumes. However, this advantage decreases as annual

volume is increased. Costs are equal for the lower output rates at a season

volume of about 24,000 bags and at the higher output rate, at about 47,000.

In each case, beyond the point of equal costs the advantage increases for

Method A. For example, using an eight station organization with Method A

at 200,000 bags per year, the advantage in costs is about $900. At the

lower rates of output--four stations for Method A at 100,000 bags, the

cost advantage of Method A is about $450.