Calculating Dividends. 



205 



differs according to the agreement made between owner and 

 patrons, or among the shareholders, in case of co-operative 

 creameries. 



231. I. First. If the net returns for the 6650 Ibs. of butter 

 sold during the month were $1197, and the creamery is to re- 

 ceive 4 cents per pound of butter as the cost of manufacture, 

 etc., the amount due the creamery is 6650X.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 150,00.0 Ibs. 

 of milk delivered during the month. The price of one pound of 

 butter fat is then easily found: $931-f-5700=16% cents. This 

 price is paid to all patrons for each pound of butter fat deliv- 

 ered 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, and this figure 

 multiplied by .16% shows the money due for his milk, "as given 

 below: 



232. Second. When the proprietor of a creamery agrees to 

 pay a certain price for 100 Ibs. of 4 per cent, milk, the receipts 

 for butter sold and the price per pound of butter do not enter 

 into the calculation of the amount due each patron for his milk; 



