(1) On or before the 12th day of each month, or the first business day thereafter, the administrator shall compute a quota price and an excess price for the preceding month as follows:

(a) Combine the figures for butterfat and skim usage by class of pool producers' milk for all pool handlers to determine a total dollar amount for butterfat and skim respectively.

(b) Add or deduct any increased value received or transportation/handling charges accrued to surplus/excess milk (per ARM 32.24.516) to the appropriate butterfat and/or skim totals in (1) (a) .

(c) To the skim total in (1) (b) add one-half the settlement reserve and deduct an amount equal to 12 cents per hundredweight of quota milk.

(d) Divide the skim dollar amount derived in (1) (c) by the total skim pounds to determine a poolwide value per skim pound. Similarly, divide the butterfat dollar amount derived in (1) (b) by the total butterfat pounds to determine a poolwide value per butterfat pound.

(e) The quota price at 3.5% test will be $1.50 higher than excess. The $1.50 differential will be split proportionately between butterfat and skim.

(f) To calculate the quota price, divide the excess pounds by total producer pounds. Multiply the resultant percentage by the differential in (1) (e) and add the amount so derived proportionately to the butterfat and skim components of the poolwide prices in (1) (d) . This skim price per pound in (1) (d) multiplied by 96.5 added to the butterfat price per pound in (1) (d) multiplied by 3.5 will result in the quota price at 3.5% for the month.

(g) To calculate the excess price, subtract the butterfat and skim proportions of the differential in (1) (f) from the quota components in (1) (g) . The skim figure so derived multiplied by 96.5 added to the butterfat figure so derived multiplied by 3.5 will result in the excess price at 3.5% for the month.

(2) The administrator shall announce to all interested persons on or before the 13th day of each month, or the first business day thereafter, the quota and excess prices for milk testing 3.5% butterfat as computed pursuant to (1) (f) and (1) (g) , and a butterfat price for quota and excess milk as provided for producer milk under ARM 32.24.301 to adjust for differences in butterfat content of the milk.