10 BULLETIN" 371, TJ. S. DEPARTMENT OF AGEICULTUEE. 



meaning of the various letters comprising- it are explained as 

 follows : 



(e) Individual expense. 



(c) Cost of handling at each elevator per bushel. 



(ac) Average cost of handling per bushel for the total. 



(b) Number of bushels handled. 



(p) Average profit per bushel for the total. 



(ip) Individual profit for each elevator. 



e 

 From this it will be seen that r='? and p — {c — ac)y^h^ip. In 



other words, assuming in the above table that the average profit 

 per bushel for the total Avas 10 cents, the formula in figures for 

 each elevator, taking elevator A as an example, would be -^^=0.05, 

 which is the per bushel cost of operating. The average cost is 



156 



:0.0^ 



5200 



The formula for individual profit in figures would be as follows: 

 0.10— (0.05— 0.03) X500=40.00, which is the individual share of 

 profit belonging to elevator A. The profit belonging to each of 

 the other elevators is determined in a similar manner, and the 

 total profit thus determined will be found to equal $520, which is 

 10 cents per bushel on 5,200 bushels. 



In order to adjust a plan of accounting and business practice to the 

 needs of a large organization, it will be well to have a business and 

 accounting expert go over carefully the present methods of business 

 and make recommendations. This will mean the organization of 

 an office staff competent to perform the Avork connected with the 

 management of the business. The plans outlined in this bulletin, 

 if put in operation under competent control, should insure the 

 equitable distribution among the patrons of the earnings of elevator 

 and warehouse companies. 



