The Potters Received a Phone Call from New Energy Informing

question 29

Essay

The Potters received a phone call from New Energy informing them of their new electric rates of $0.048 per kWh.That sounded good,but Harry wanted to see how that compared to his current rate before making a decision.After looking at his bills for the past year,it was obvious that the Potters used 15,719 kWh during the year and paid $828.38 in electric charges.What is the net change percentage between their current rate and the rate being offered? Should the Potters take advantage of the offer from New Energy?

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Definitions:

LIFO Liquidation

The process of selling older inventory items purchased at lower costs, which can lead to an artificially higher reported profit due to inflation.

Pre-tax Effect

The impact of an event or transaction on a company's financials before taking into account the effects of income tax.

Units

A measurement or quantity of something, often used in the context of production, sales, or inventory.

LIFO Liquidation

A situation where older inventory, costed at historical prices, is sold, possibly resulting in higher reported profits due to inflation.