208 Testing Milk and Its Products. 



which represents the depreciation of the property, wear and tear 

 of building and machinery, bad debts, etc. Thesei items are 

 added together, and their sum subtracted from the gross receipts 

 for the butter sold during the month. 



235. Assuming the receipts for the butter during the month 

 to be $1197, and the running expenses of the factory $285, the 

 amount to be divided among the patrons is $912; the quantity 

 of butter fat received was 5700 lbs., and the price per pound of 

 butter fat will therefore be 16 cents. The account wiU then 

 stand as given in (233). 



336. Other systems of payment. Besides these four 

 systems of payment, there are various other agreements 

 made between manufacturer and producer, but with 

 them all the one important computation is the price to 

 be paid per pound of butter fat; this forms the basis of 

 calculating the factory dividends, when milk is paid for 

 by the Babeoek test. 



237. Paying for butter delivered. In some instances 

 patrons desire to receive pay for the quantity of butter 

 which the milk or cream delivered by them would make. 

 This can be ascertained quite satisfactorily from the total 

 receipts and the total weights of both butter fat and but- 

 ter. The total money to be paid for butter (the net re- 

 ceipts) are divided by the number of pounds of butter 

 sold, to get the price to be paid per pound of butter ; the 

 total yield of butter divided by the total amount of 

 butter fat delivered in the milk, gives the amount of 

 butter corresponding to one pound of butter fat, and 

 thC; number of pounds of fat delivered by each patron 

 is then multiplied by this figure. This method requires 

 more figuring than those given in the preceding, and the 

 dividends are no ifiore accurate, in fact less so, than 

 when calculations are based on the price per pound of 

 fat. 



