OVERHEAD CHARGES:

8 per cent interest on $220,000.00 investment equals $ 17,600.00
8 per cent interest on value of land ($10,000.00) $ 800.00
8 per cent interest on working capital ($7,500.00) $ 600.00
3 per cent depreciation on $220,000.00 $ 6,600.00
Insurance (estimated) $ 1,000.00
Taxes (estimated) $ 2,000.00
Total overhead charges $ 28,600.00

or 28600 / 53280 = 53.7 cent per ton

Total Expense $ 75,069.60

or 75069.60 / 53280 = $ 1.409 per ton

Divided as follows:

Overhead charges $ 0.53.7
Manufacturing Cost (total) $ 0.87.2

[12]

NUMBER FOUR

Manufacturing Costs Per Ton of Ice Using Steam Power at