72 DAIRY CHEMISTRY 



to only .1, the butter maker can conclude that errors 

 in the manipulation of the test or excessive losses in 

 skimming and butter making have occurred. While, 

 on the other hand, excessive gains in overrun are also 

 due to errors in manipulation. 



72. Dividends. Since the value of milk for butter- 

 making purposes is directly proportional to its fat 

 content, it follows that the amount of fat in the 

 milk, as determined by the Babcock test, can be 

 taken as the basis for making out dividends in 

 creameries. The usual method followed is, first, to 

 determine the total number of pounds of fat deliv- 

 ered by each patron ; this is done by multiplying 

 the total number of pounds of milk by the percentage 

 of fat as obtained from the composite test. The total 

 number of pounds of fat delivered to the creamery 

 by all of the patrons is then determined. The ex- 

 penses of manufacture, including the sinking fund, 

 are deducted from the proceeds of the sales. These 

 expenses depend upon the amount of butter manu- 

 factured, the amount of money reserved for the 

 sinking fund, and all other necessary expenses 

 incurred in the manufacture and sale of the butter. 

 The cost of manufacture usually varies from 2| to 

 4 cents per pound for butter. The cost of manu- 

 facture is deducted from the gross receipts and 

 then the price per pound of the butter fat is 

 determined. From the price per pound of the 

 butter fat (not butter) the dividend of each patron 

 is calculated. 



