Calculating Dividends. 209 



237a. Making butter "for the overrun." When 

 cream is bought on the basis of paying the market price 

 of butter for each pound of butter fat in the cream, the 

 margin received by the cream buyer, if he makes this 

 cream into butter, is influenced both by the price of 

 butter and the per cent, of overrun he obtains. If the 

 price of butter is 20c. and the overrun is 20%, each 

 pound of butter fat makes 1.2 lbs. of butter, and the 

 buyer receives 24 cents for the butter, or 4 cents margin 

 on the 1.2 lbs. of butter made, which is equal to 3Vfi 

 cents per pound of butter. If the price of butter is 

 36 cents, and the overrun 20%, the cream buyer receives 

 1.2X36=43 cents for the butter, or 7 cents for 12 lbs. 

 of butter, eqnivalent to 5.8 c. per pound of butter. 



238. Relative-value tables. These tables c:ive many 

 of the multiplications used in computing the amount 

 due for various weights of milk of different fat !■< in- 

 tents. They can easily be constructed by any on" 

 as soon as the price of one pound of fat is determined 

 in each case. If the price to be paid per pound of fat 

 is, say 25 cents, the value of each 100 lbs. of milk of 

 different quality is found by multiplying its test by ^.'i. 

 If the average tests of the different patrons' milk vary 

 from 3 to 5 per cent., the relative-value table would be 

 as follows. 



3.0X25=7.^r. per 100 lbs. 1 3.6X2:i=Pne. per 100 lbs. 



3.1X2.'5=77.5c. 



3.2X25=,«0c. 



3.3^'2.'i=82.5c. 



n.4x2.'i=s.',.nc. 



3.5r>:25=87.5c. 



rx 25=92 .5c. 



3.8y2.5=9.".0c. 



3.9X25=97 5c. 



4 0X2.5=:100c. 



etc. 



By continuing this multiplication, or adding the mul- 

 tiplier each time for each tenth of a per cent, up to 5 



