Calculating Dividends. 215 



test (258) are added together; the pounds of milk de- 

 livered by each patron are multiplied by this figure 

 and the product multiplied by the price to be paid foi 

 the sum of the fat and the casein. 1 This price per 

 pound is obtained in the same way as the price per 

 pound of fat. Each patron's milk is multiplied by the 

 sum of the fat and the casein tests and the money to 

 be distributed to the patrons is divided by the sum of 

 these figures obtained for all patrons for the period 

 covered. 



The illustrations already given for calculating patrons' 

 dividends at creameries according to the various meth- 

 ods will serve equally well to show the manner in which 

 dividends are calculated at a cheese factory. For the 

 sake of clearness an example is given that applies di- 

 rectly to cheese factories. 



243. Illustration of calculation dividends. It may be 



assumed that 15,000 libs, of green cheese is made from 150,000 

 Ibs. of milk delivered to a factory in a month. According to the 

 weighings and the tests made, the milk contained 5,700 Ibs. of 

 butter fat. If the cheese sold at an average price of 7% cents 

 a pound, the gross receipts would be $1,125.00. The amount to 

 be deducted from the gross receipts will depend on the agree- 

 ment made between the factory operator and the patrons, in 

 case of proprietary cheese factories, or between the shareholders 

 and the maker, when the factory is run on the co-operative plan. 

 As before we shall consider these systems separately. 



244. I. Proprietary cheese factories. The owner of the 

 factory generally agrees to make the cheese for a certain price 

 per pound and to pay the patrons what is left after deducting 

 this amount. If the price agreed on is 1% cents per pound of 

 green cheese, this would amount to $225 in the example given. 

 Subtracting this sum from the gross receipts, $1,125, leaves $900, 



1 Wisconsin expt. station, bull. 197. 



