Calculating Dividends. 201 



241. Calculation of dividends. As with creameries, the 

 first thing to be ascertained is the price to be paid per 

 pound of butter fat. The factory records should show 

 the number of pounds of cheese made from the total milk 

 delivered to the factory during a certain time, generally 

 one month, and the money received for this cheese. The 

 cost of making the cheese and all other expenses that 

 should be paid for out of the money received for the 

 cheese, are deducted from the total receipts, and the dif- 

 ference is divided among the patrons in proportion to 

 the amounts of butter fat delivered in the milk. 



The weights of the milk delivered and the tests of the 

 composite samples furnish data for calculating the quan- 

 tities of butter fat to be credited to each patron. The 

 money to be paid to the patrons is then divided by the 

 total weight of butter fat delivered to the factory and the 

 price of one pound of fat thus obtained. The money due 

 each patron is now found by multiplying the total num- 

 ber of pounds of butter fat in his milk by this price per 

 pound. 



The illustrations already given for calculating patrons' 

 dividends at creameries according to the various methods 

 will serve equally well to show the manner in which div- 

 idends are calculated at a cheese factory. For the sake of 

 clearness an example is given that applies directly to 

 cheese factories. 



242. Illustration of calculation of dividends. It may 

 be assumed that 15,000 Ibs. of green cheese is made 

 from 150,000 Ibs. of milk delivered to a factory in a 

 month. According to the weighings and the tests made, 

 the milk contained 5700 Ibs. of butter fat. If the cheese 



