RELATIONSHIP oF PRIME COST, PHYSICAL VOLUME oF 
PRODUCTION, AND UNIT PRIME COST 
800 
500 
INDEX NULBER (1899=100) 
400 
0C 
4 
‘3 
PRIME COST 
5 
* 
ap w— 
- ; 
0DUCTION 44 7 PRIME = 
00 
—m—— 
1904 1909 
CHART 14.—By prime cost is meant the sum of labor and material costs. During the period 1919- 
1925, large scale production and sales combined with increased product per man to reduce sharply unit 
orime cost after it had risen for 20 years. 
1019 192] 1823 1925 1927