+322. Cheese yield basis of buying milk.+--Let us suppose that at a
cheese factory there were five patrons: (A) delivered 100 pounds of milk
testing 3 per cent fat; (B) 100 pounds of milk testing 3.5 per cent fat;
(C) 100 pounds of milk testing 4.0 per cent fat; (D) 100 pounds of milk
testing 4.5 per cent fat; and (E) 100 pounds of milk testing 5.0 per
cent fat. Table XXVI shows the actual number of pounds of cheese
containing 37 per cent moisture which 100 pounds of milk containing
different percentages of fat will produce. The cheese sold net for 20
cents a pound.
TABLE XXVI
SHOWING PAYMENTS FOR MILK BASED ON THE ACTUAL YIELD
OF CHEESE
=====================================================================
PATRON | POUNDS | PER CENT | YIELD OF CHEESE | PRICE A | AMOUNT
| OF MILK | OF FAT IN | CONTAINING | POUND | DUE EACH
| DELIVERED | MILK | 37% MOISTURE | | PATRON
-------+-----------+-----------+-----------------+---------+---------
A | 100 | 3.0 | 8.30 | $.20 | $1.66
B | 100 | 3.5 | 9.45 | .20 | 1.89
C | 100 | 4.0 | 10.60 | .20 | 2.12
D | 100 | 4.5 | 11.74 | .20 | 2.348
E | 100 | 5.0 | 12.90 | .20 | 2.58
-------+-----------+-----------+-----------------+---------+---------
Total | 500 | 20 | 52.99 | .20 | 10.598
=====================================================================
This table shows the amount of money each patron should receive if the
money were divided on the basis of the actual yield of cheese.
+323. Fat basis for payment of milk.+--Let us suppose that the same five
patrons delivered the same quantity of milk testing the same percentages
of fat and that the cheese sold for the same price. A total of 20 pounds
of fat was delivered and the cheese sold for $10.598; by dividing this
amount by the pounds of fat delivered, the price or value of one pound
of fat is found to be $.5299. Multiplying the pounds of fat each patron
delivered by the price a pound would give the amount of money due each
patron.
TABLE XXVII
SHOWING PAYMENTS FOR MILK BASED ON FAT-CONTENT OF
MILK
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