CALCULATION OF DIVIDICXDS 137 



marked 62 pounds, net, there are actually 62.5 pounds of butter 

 to allow for shrinkage. 



.\mount of fat credited to patron, 30 per cent of 65 lbs. 



Actual amount of fat in cream, 30.^5 ]ier cent of 65.25 lbs. 



Weight of buttermilk, 70 per cent of 05 lbs. 



Per cent of fat in buttermilk, 0,5 |ier cent 



Weight of fat in buttermilk, 0.5 per cent of 45.5 lbs. 



A\'eight of fat in butter, 19 73S— .227 



100 

 Weight of butter made, on basis of So per cent fat, — Xi9.5ir = 24. yj 



So 



O2 



Weight of butter sold, X24.39 =24. 2 



62.5 



24.2 — 19 5 



O^'crrun ^Xioo =24.1% 



195 



In the abo^•e calculation no account has been taken either of 

 the mechanical losses or of the lact that the a\'erage per cent of 

 fat in the butter will, of necessit}', slightl}' exceed the minimum 

 standard of So per cent. 



In conclusion, then, we would say that while the (Aerrun 

 ma}% and will, vary to some extent, from da}' to da}' and from 

 week to week, the creamery that does careful weighing and test- 

 ing, and credits its patrons with half-pounds of cream and half 

 per cents of fat, will be like!}' to ha\'e an oA'errun for the }'ear of 

 about 23 to 24 per cent. If it has this it is d(.)ing careful, elhcient 

 work. On the other hand, if the overrun is much abo\'e or below 

 this something is wrong somewhere and needs to lie remedied. 



Calculation of Dividends. — The method of calculating di\'i- 

 dends will ^■ary according to the agreements between the manu- 

 facturer of the butter and the milk and cream producers. Some 

 manufacturers agree to make the butter for so man}' cents per 

 pound of butter (usually 3 or 4 cents). Occasionall}' the cream- 

 ery proprietor agrees to pay a final fixed sum for milk deli^'ered 

 containing a definite amount of fat (usuall}' 4 per cent). These 

 two methods are not in use much at the i^resent time, although in 

 the eastern part of the United States the method of pa}'ing the 

 operator so much per pound of butter-fat manufactured is quite 

 common. 



The two methods most commonh' used, cspecialh' in the 

 central West, are as follows: 



