CALCULATING DIVIDENDS 291 
eries receiving both whole milk and cream on a par with 
those receiving only cream, so far as overrun and price 
per pound of fat is concerned, it will be necessary to 
deduct 2 per cent from the fat delivered by whole milk 
patrons and not, as commonly done, add 2 per cent to 
the fat delivered by cream patrons. 
The following example illustrates how milk and cream 
patrons are credited with butter fat in making dividends 
at creameries receiving both milk and cream: 
Patron A delivers 6,500 pounds of milk testing 4.0 per 
cent. 
Patron B delivers 600 pounds of cream testing 30 per 
cent. 
A’s total fat 6,500 K .o4 == 260 pounds. B’s total 
fat — 600 & .30 = 180 pounds. To decrease A’s fat by 
2 per cent, multiply 260, the total pounds of fat furnished 
in his milk, by .98, which equals 254.8. 
In making the dividend, therefore, A is paid for 254.8 
pounds of fat and B for 180 pounds. 
THE TWO PER CENT 
TOW CALCULATED. 
In a well conducted creamery the average loss of fat 
in the skim-milk should not be more than .078%. Di- 
viding this figure by the average percentage of fat in 
milk, 3.9, we get .02. So that in the separating process. 
.02 pound of fat is lost in the skim-milk for every pound 
of fat present in the milk. 
From the above calculation it will be seen that the 
cream factor (2%) would necessarily vary with the 
efficiency of skimming and the average test of the milk. 
To determine what this shall be for any particular cream- 
ery divide the average loss of fat in the skim-milk by the 
average test of the milk at the creamery. 
