1. How much butter taken Into storage has had to be converted into butter oil since March 31, 1958?
2. What volume of butter oil has been sold since March 31, 1958, and for what total price?
3. What volume of butter oil is now held in storage, and what is its approximate value?
4. What is the estimated loss sustained since March 31, 1958, as a result of failure to sell butter in that form and its necessary conversion to butter oil?
Answer by: Mr. Charlton:
1. No butter had to be converted to butter oil, but as the weight of butter oil is approximately 80 per cent of the weight of butter, conversion is desirable in order that storage costs be minimized. Since March 31, 1958, 100,215,629 pounds of butter have been converted to butter oil.
2. 1,762,087 pounds of butter oil have been sold for $1,374,427.86.
3. 78,474,292 pounds of butter oil, with an inventory value of $61,209,947.76.
4. The saving in storage costs will compensate for the cost of converting butter to butter oil and therefore there is no loss to date.
Subtopic: BUTTER OIL
Sub-subtopic: SALES, AMOUNT IN STORAGE, ETC.