CHAPTER XXXV. 
CREAMERY AND FACTORY DIVIDENDS. 
CREAMERY 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 divid- 
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