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Hi john sir, plz guide me about the following question. i do’nt know what i will have to do with such type of question at all.
The following figures relate to two electricity supply companies.
Meter reading billing collection costs
COMPANY A COMPANY B
Total cost ($000) 600 1000
units sold(millions) 2880 9600
Number of consumer(Thousands) 800 1600
Sales of electricity(millions) $18 $50The figures given indicate that company A is more efficient than company b. This statement is true or false.
Plz john sir explain
The costs refer to the cost of collecting the meter readings.
This will not be affected by how much electricity they have sold. It will be affected by how many meters have to be read.
Assuming that each customer has one meter, then to compare how efficient the companies are the best is to calculate the cost per meter.So for company A it is $600,000 / 800,000 = $0.75
If you do the same for Company B as well, then the cheaper one is the more efficient one.
Hello Sir
Please advise how I supposed to guess that the Total costs are only referred to the collecting the meter readings?
Some of the tasks are just need to be guessed….
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