CHAPTER XIII. 

 CALCULATING DIVIDENDS. 



A. CALCULATING DIVIDENDS AT CREAMERIES. 



226. The simplest method of calculating dividends at 

 creameries is to base the calculations on the amount of 

 butter fat delivered by the various patrons. Each lot 

 of milk is weighed when delivered at the creamery, and 

 a small quantity thereof is saved for the composite sam- 

 ple, as previously explained under Composite Tests 

 (180). Some creameries test these samples at the end 

 of each week, and others after collecting them for ten 

 days or two weeks. If the four weekly composite sam- 

 ples of a patron's milk tested 3.8, 4.0, 3.9, 4.1 per cent, 

 these four tests are added together, and the sum divided 

 by 4; the result, 3.95 per cent., is used as the average 

 test of this milk. By multiplying the total number of 

 pounds of milk delivered by this patron, by his average 

 test, the total weight of butter fat in pounds delivered 

 to the factory during the month is obtained. This 

 weight of fat is then multiplied by the price to be paid 

 by the creamery per pound of butter fat; the product 

 shows the amount of money due this patron for the milk 

 delivered during the time samples were taken. 



227. Price per pound of butter fat. The method of 

 obtaining the price to be paid for one pound of butter 

 fat varies somewhat in different creameries, on account 

 of the different ways of paying for the cost of manu- 



