10 BULLETIN 371, U. S. DEPARTMENT OF AGRICULTURE. 
meaning of the various letters comprising it are explained as 
follows: 
(e) Individual expense. 
(c) Cost of handling at each elevator per bushel. 
(ac) Average cost of handling per bushel for the total. 
(6) Number of bushels handled. 
(p) Average profit per bushel for the total. 
(7p) Individual profit for each elevator. 
ae : é s 
From this it will be seen that = and p—(e—ac)xXb=ip. In 
other words, assuming in the above table that the average profit 
per bushel for the total was 10 cents, the formula in figures for 
each elevator, taking elevator A as an example, would be 23;=0.05, 
which is the per bushel cost of operating. The average cost is 
156 —0,03. 
The formula for individual profit in figures would be as follows: 
0.10— (0.05—0.03) X500—=40.00, which is the individual share of 
profit belonging to elevator A. The profit belonging to each of 
the other elevators is determined in a similar manner, and the 
total profit thus determined will be found to equal $520, which is 
10 cents per bushel on 5,200 bushels. | 
In order to adjust a plan of accounting and business practice to the 
needs of a large organization, it will be well to have a business and 
accounting expert go over carefully the present methods of business 
and make recommendations. This will mean the organization of 
an office staff competent to perform the work connected with the 
management of the business. The plans outlined in this bulletin, 
if put in operation under competent control, should insure the 
equitable distribution among the patrons of the earnings of elevator 
and warehouse companies. 
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