286 MANUAL OF MILK PRODUCTS 



312.4975 + 56.2495 = 368.747, number of pounds butter 

 $.03 (cost of manufacture) x 368.747 = $11.062 

 $11.062 (cost of manufacture) + $3.00 (wages) = $14.062 

 $.25 X 56.2495 (Ib. overrun) = $14.062 



Creamery dividends. 



PROBLEM 5 



A creamery with a capital stock of $6200 receives 184,475 pounds of 

 fat and pays 30.22 cents a pound for it. The overrun of the butter 

 made is 22.53 per cent, and the butter is sold for an average price of 

 31.26 cents per pound. The sum of $334.50 is received for buttermilk. 

 The operating expenses amount to $13,793. It is to be considered 

 that $5200 of the $6200 capital stock is for building, land, and equip- 

 ment. With a depreciation in value of 15 per cent on the $5200, what 

 dividend could be declared? l 



$.3022 x 184,475 = $55,748.34, amount paid for fat 

 $55,748.34 + $13,793.00 (expenses) = $69,541.34, total expenditure 

 184,475 X .2253 (overrun) = 41,562.21, number of pounds overrun 

 184,475 + 41,562.21 = 226,037.21, number of pounds butter 

 $.3126 x 226,037.21 = $70,659.23, receipts for butter 

 $70,659.23 + $334.50 (receipts for buttermilk) = $70,993.73 

 $70,993.73 -$69,541.34 = $1452.39, net profit without depreciation 

 $5200 (value of property) x .15 = $780, depreciation 

 $1452.39 - $780.00 = $672.39, net profit 

 $672.39 -=- $6200 = .10845 



.10845 X 100 = 10.845 per cent dividend, or 10.845 cents on a 

 dollar. Answer. 



Computing the rate in a cooperative creamery. 



In a cooperative creamery the patrons are often paid a certain rate 

 a pound for their fat. This rate is obtained by subtracting the total 

 expenses from the gross receipts and dividing the remainder by the 

 total number of pounds of fat delivered by the patrons. The quotient 

 is the rate to be paid each patron a pound for his fat. 



PROBLEM 6 



The pounds of milk, the fat tests, and the pounds of fat delivered by 

 ten creamery patrons are given in the following table. Find the rate 

 and the amount of money due each patron. 



1 Usually the depreciation in average creamery property is about 

 15 per cent. This 15 per cent should be put in a sinking fund to be 

 used in purchasing new apparatus. 



