The local water utility has maintained records over several years of its monthly purchases of raw water from the state water authority. The monthly averages are shown in the following table. Assume that the city pays a flat rate p...
The local water utility has maintained records over several years of its monthly
purchases of raw water from the state water authority. The monthly averages are
shown in the following table.
Assume that the city pays a flat rate per thousand gallons of water purchased
and that the fiscal year begins on July 1. Payment is made in the month after
use. Prepare quarterly allotments for $8 million appropriated for water purchase.
Gallons (000s)
Gallons (000s)
January 35,000 July 125,000
February 35,000 August 125,000
March 50,000 September 90,000
April 65,000 October 60,000
May 68,000 November 50,000
June 100,000 December 40,000
Answer Question 5 using Quarters of a fiscal year that begins on July 1 (Quarter 1 is July 1-Spetember 30, etc.) Provide the quarterly usage of water for each quarter, the percent of the budget allocated to each quarter, and the cost per quarter for the water.
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