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