APPENDIX B 



283 



fat basis, dealers will try to buy from the producers of low- 

 testing milk, and thus reduce the quality of the milk received. 

 But this would not be contingent on the particular basic test 

 used in quoting prices. 



TABLE I 

 The Operation of Given Differentials with Comparisons on 4% Base 



Value of i Ib. butter/ at in whole milk, assuming value of skim 8o for the amount 

 in 100 Ibs. of whole milk 



Again, if dealers regularly sell milk testing, for example, on an 

 average 4 per cent, while quoting prices on the basis of 3.5 per 

 cent milk, their margin of gross profit will appear to be wider 

 than it actually is. 



Is there any disadvantage in the fact that different com- 



