Calculating Dividends. 



193 



150,000 gives 3.8 as the average test, or the average 

 amount of butter fat in each 100 Ibs. of milk received 

 during the month. 



So far, the method of calculation is common for all dif- 

 ferent systems of payment given above ; the manner of 

 procedure now differs according to the agreement made 

 between owner and patrons, or between the shareholders, 

 in case of co-operative creameries. 



230. I. First. If the net returns for the 6650 Ibs. of 

 butter sold during the month were $1197, and the creamery 

 is to receive 4 cents per pound of butter as the cost of 

 manufacture, etc., the amount due the creamery is 

 6650 X. 04 -$266, and the patrons would receive $1197 

 $266 =$931. This sum, $931, is to be paid to the patrons 

 for the 5700 Ibs. of butter fat, which, as shown above, 

 was the weight of fat contained in the 150,000 Ibs. of 

 milk delivered during the month. The price of one 

 pound of butter fat is then easily found: $931-^5700 = 

 16J cents. This price is paid to all patrons for each 

 pound of butter fat delivered in their milk during the 

 month. The monthly milk record of three patrons may, 

 e. g., be as given in the following table: 



Multiplying each patron's total milk by his average 

 test gives the number of pounds of butter fat in his milk, 



13 



