Calculating Dividends. 207 



which represents the depreciation of the property, wear and tear 

 of building and machinery, bad debts, etc. These items are 

 added together, and their sum subtracted from the gross receipts 

 for the butter sold during the month. 



235. Assuming the receipts for the butter during the month 

 to be $1197, and the running expenses of the factory $285, the 

 amount to be divided among the patrons is $912; the quantity 

 of butter fat received was 5700 Ibs., and the price per pound of 

 butter fat will therefore be 16 cents. The account will then 

 stand as given in (233). 



236. Other systems of payment. Besides these four 

 systems of payment, there are various other agreements 

 made between manufacturer and producer, but with 

 them all the one important computation is the price to 

 be paid per pound of butter fat ; this forms the b^sis of 

 calculating the factory dividends, when milk is p. .d for 

 by the Babcock test. 



237. Paying for butter delivered. In some instances 

 patrons desire to receive pay for the quantity of butter 

 which the milk delivered by them will make. This can 

 be ascertained quite accurately from the total receipts 

 and the total weights of both butter fat and butter. The 

 total money to be paid for butter (the net receipts) are 

 divided by the number of pounds of butter sold, to get 

 the price to be paid per pound of butter; the total yield 

 of butter divided by the total amount of butter fat de- 

 livered in the milk, gives the amount of butter corre- 

 sponding to one pound of butter fat, and the number of 

 pounds of fat delivered by each patron is then multi- 

 plied by this figure. This method requires more figur- 

 ing than those given in the preceding, and the dividends 

 are no more accurate, in fact less so, than when calcula- 

 tions are based on the price per pound of fat. 



