Calculating Dividends. 205 



229. II. Co-operative creameries. Where the 

 creamery is owned by the patrons, one of the stock- 

 holders who is elected secretary attends to the details of 

 running the factory and selling the product. His ac- 

 counts show the amount of money received each month 

 for the butter and other products sold, and the expenses 

 of running the factory during this time. The expenses 

 are subtracted from the receipts, and the balance is 

 divided among the patrons, each one receiving his pro- 

 portionate share according to the amounts of butter fat 

 delivered in each case, as shown by the total weight and 

 the average test of milk delivered during this time. 



In nearly all cases, the farmers receive about eighty 

 pounds of skim milk for each one hundred pounds of 

 whole milk they deliver to the factory, in addition to 

 the amount received for the milk, calculated according 

 to one or the other of the preceding methods. 



230. Illustration of calculation of dividends. Tn order 

 to illustrate the details of calculating dividends, or the amount 

 to be paid each patron for the milk delivered, when 

 payments are made by each of the four systems given, it will be 

 assumed that a creamery receives 5000 pounds of milk daily during 

 a month, and makes 6650 Ibs. of butter from the 150,000 Ibs. 

 of milk received during this time. Thei average test of this milk 

 may be found by multiplying the total weight of milk delivered 

 by each patron by his average test, and dividing the sum of 

 these products by the total weight of milk received at the cream- 

 ery (in the example given, by 150,000), the quotient being mul- 

 tiplied by 100. Such calculations may show that, e. g., 5700 Ibs. 

 of butter fat have been received in all the milk delivered by the 

 different patrons; this multiplied by 100 and divided by 150,000 

 gives 3.8 as the average test, or the aveirage amount of butter 

 fat in each 100 Ibs. of milk received during the month. 



So far the method of calculation is common for the different 

 systems of payment given above; the manner of procedure now 



