CALCULATION OF DIVIDENDS 137 



marked 62 pounds, net, there are actually 62.5 pounds of butter 

 to allow for shrinkage. 



Amount of fat credited to patron, 30 per cent of 65 Ibs. = 19 . 50 



Actual amount of fat in cream, 30.25 per cent of 65.25 Ibs. = 19. 738 



Weight of buttermilk, 70 per cent of 65 Ibs. =45-5 

 Per cent of fat in buttermilk, 0.5 per cent 



Weight of fat in buttermilk, 0.5 per cent of 45.5 Ibs. = . 227 Ib. 



Weight of fat in butter, 19.738 .227 =19.511 Ibs. 



Weight of butter made, on basis of 80 per cent fat, X 19.51 1 = 24. 39 



oo 



62 



Weight of butter sold, -- X24-39 =24. 2 



62.5 



Overrun - Xioo =24.1% 



iQ-S 



In the above calculation no account has been taken either of 

 the mechanical losses or of the fact that the average per cent of 

 fat in the butter will, of necessity, slightly exceed the minimum 

 standard of 80 per cent. 



In conclusion, then, we would say that while the overrun 

 may, and will, vary to some extent, from day to day and from 

 week to week, the creamery that does careful weighing and test- 

 ing, and credits its patrons with half-pounds of cream and half 

 per cents of fat, will be likely to have an overrun for the year of 

 about 23 to 24 per cent. If it has this it is doing careful, efficient 

 work. On the other hand, if the overrun is much above or below 

 this something is wrong somewhere and needs to be remedied. 



Calculation of Dividends. The method of calculating divi- 

 dends will vary according to the agreements between the manu- 

 facturer of the butter and the milk and cream producers. Some 

 manufacturers agree to make the butter for so many cents per 

 pound of butter (usually 3 or 4 cents). Occasionally the cream- 

 ery proprietor agrees to pay a final fixed sum for milk delivered 

 containing a definite amount of fat (usually 4 per cent). These 

 two methods are not in use much at the present time, although in 

 the eastern part of the United States the method of paying the 

 operator so much per pound of butter-fat manufactured is quite 

 common. 



The two methods most commonly used, especially in the 

 central West, are as follows: 



