The following figures were taken from the annual accounts of two electricity supply boards working on uniform costing methods. Meter reading, billing and collection costs: Comparative costs for Boards A and B may be collected as follows and are useful in showing how well (or otherwise) individual services are performing. Board A Board B $000 $000 Salaries and wages of: Meter readers 150 240 Billing and collection staff 300 480 Transport and travelling 30 40 Collection agency charges – 20 Bad debts 10 10 General charges 100 200 Miscellaneous 10 10 ––––– ––––– 600 1,000 ––––– –––––
Units sold (millions) 2,880 9,600 Number of consumers (thousands) 800 1,600 Sales of electricity (millions) $18 $50 Size of area (square miles) 4,000 4,000 Comparative costs for Boards A and B may be collected as follows and are useful in showing how well (or otherwise) individual services are performing.
it is taken from kaplan publishing book F2 pg# 292
please help me solve it ASAP because i do not understand it from the solution given in the text.
