Calculating Dividends. 211 



239. Milk- and cream dividends. When cream from 

 farm hand separators or other sources is brought to a 

 factory receiving and skimming whole milk, the cream 

 patron's dividend should be calculated a little differ- 

 ently than that of the milk patron (210). 



In one case the dividend is based on the weight and 

 the test of cream and in the other on the weight and 

 the test of milk; the difference between the two being- 

 represented by the fat left in the factory skim milk. 

 This skim milk fat is included in the milk patron's 

 dividend and consequently ought also to be allowed for 

 in calculating the amount due the cream patron. Such 

 an allowance can be fairly made by multiplying the 

 cream fat by 1.03. The amounts of fat thus obtained 

 represent very nearly the fat in the milk from which 

 the cream was skimmed and assumes that the fat re- 

 turned to the milk patron in his skim milk is about 

 three per cent, of the total fat in his whole milk. 



Since both milk and cream patron suffer the same 

 manufacturing losses in the butter milk, an equaliza- 

 tion of the skimming losses is all that is necessary in 

 order to put both on a uniform basis for calculating 

 dividends. 



240. The following illustration will help to make these cal- 

 culations clearer. Milk patron No. 1 delivers to the creamery 

 during the month 5320 Ibs. of milk testing 3.8 per cent, fat, 



which therefore contains ( 523 1( ^ 3 ' 8 ) 202 Ibs. butter fat. If the 

 price paid the patrons is 20c., then 202 multiplied by 20 amounts to 

 $40.40, the money due this patron for his milk. If another pat- 

 ron sent 485 Ibs. of cream testing 22.0 per cent, fat to the same 

 factory during the month, the weight of fat in the cream is first 



found in the same way as in the milk, f 485 x 22> )r= 106 .7 Ibs. but- 



\ 100 / 



