COST OF MARKETING DAIRY PRODUCTS 269 



FACTORY COSTS 



Labor in factory and office $ 6.97 



Interest on investment, insurance, and depreciation 1.40 



Power, ice, and water 2.67 



Miscellaneous expenses, such as loss on surplus milk and 

 cream, loss on bad accounts, stationery, advertising, 



etc 2.67 



$13-71 



COST OF DELIVERY 



Driver, monthly salary $ 60.00 



2 horses, feed, and care 36.00 



Shoeing and repairs, including painting of wagon 15.00 



Interest and depreciation 16.00 



Monthly cost $127.00 



Daily cost $ 4.23 



Total daily cost $17.94 



Daily net profit en route = 26.36 17.94 = $8.42. 



By studying the above report it is readily discovered that 

 32 gallons of cream were handled at a loss; 161 gallons of milk 

 were handled at a rather small margin, but it is supposed that 

 these were all sold in cans and were therefore handled with less 

 labor and with less loss. A creamery or a market milk establish- 

 ment should have a daily report giving complete information 

 about the day's sales. It should preferably be so ruled that 

 the purchase cost and the gross profit can be figured in the 

 office before it reaches the manager's desk. 



