### Question
How is the term per-unit retain allocation defined?


### Answer
The term **per-unit retain allocation** is defined in *26 U.S.C. § 1388* as the following:

> any allocation, by an organization to which part I of this subchapter applies, to a patron with respect to products marketed for him, the amount of which is fixed without reference to the net earnings of the organization pursuant to an agreement between the organization and the patron

#### Citation:
  - *26 U.S.C. § 1388*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter T-Cooperatives and Their Patrons > PART III-DEFINITIONS; SPECIAL RULES**

