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The formula for a patronage refund typically involves calculating the net earnings of a cooperative and then distributing a portion of those earnings back to members based on their level of participation or patronage. The basic formula can be expressed as:

Patronage Refund = (Member's Patronage / Total Patronage) × Total Refund Pool.

This ensures that members receive refunds proportional to their contributions or transactions with the cooperative.

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1mo ago

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