Calculating Dividends. 199 



tion of the skimming losses is all that is necessary to put 

 both on a uniform basis for calculating dividends. 



239. The following illustration may help to make these 

 calculations clearer. Milk patron No. 1 may deliver to 

 the creamery during the month 5320 Ibs. of milk testing 



(coorv V" Q ft \ 

 1(X) '-j 



202 Ibs. butter fat. If the price paid the patrons is 20c 

 then the 202 Ibs.x20c amounts to $40.40 the money due 

 this patron for his milk. If however another patron 

 sent 485 Ibs. of cream testing 22.0 per cent, fat to the 

 same factory during the month the weight of fat in the 

 cream is first found in the same way as in the milk. 



( 48 ^ 22 ) =106.7 Ibs. butter fat. Now instead of mul- 

 tiplying this butter fat by 20c as was done for the milk 

 patron it must first be multiplied by 1.03 which makes 

 the necessary allowance for the skim milk fat that the 

 milk patron was paid for. 106.7 X 1.03 =109. 9 Ibs. but- 

 ter fat which is now multiplied by 20c per pound giving 

 $21.98. This is the amount due the cream patron when 

 both milk and cream are received at the same factory 

 and the cream from both patrons is churned together. 1 



B. CALCULATING DIVIDENDS AT CHEESE FACTORIES. 



240. The amount of cheese made from a certain quan- 

 tity of milk depends, as before shown, in a large measure 

 on the richness of the milk in butter fat (222). Rich 

 milk will give more cheese per hundredweight than 

 poor milk, and the increased yields will be nearly, but 

 not entirely, proportional to the fat contents of the dif- 



1 17th Repor t Wis. expt station, p. 90. 



