CHAPTER XL 



CALCULATING DIVIDENDS. 



Milk and cream yield butter in proportion to their 

 butter fat content. That is the reason why practically 

 all milk and cream made into butter are now bought by 

 the ''Babcock test," that is, on the ''butter fat basis." In 

 discussing the method of paying for' milk and cream, 

 therefore, only the ''butter fat basis" will be considered. 



The periodical payments made for milk and cream at 

 creameries are known as creamery dividends. These pay- 

 ments or dividends are sometimes made daily, as in the 

 case of some gathered cream plants; more often, how- 

 ever, they are made weekly, semi-monthly and even 

 monthly. 



The different steps in the calculation of dividends at 

 creameries are as follows: 



First, find the total pounds of butter fat received from 

 all the patrons. This is done by finding the total amount 

 of butter fat furnished by each patron separately and 

 adding together the totals so found. In finding each 

 patron's total butter fat, every delivery of cream is mul- 

 tiplied by its test and the results of the different deliv- 

 eries added together. 



Second, find the net money from the sale of butter by 

 multiplying each sale of butter by its price and deducting 

 from the amount thus found the cost of making the butter. 



Third, find the price per pound of butter fat by divide 



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