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Questions: Refer to the data in the second sentence at the beginning of the article, a typical monthly bill could go from $92.47 to $104.62.

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  1. Refer to the data in the second sentence at the beginning of the article, a typical monthly bill could go from $92.47 to $104.62. Assume this data pertains to residential customers. For West Penn Power, assume 500,000 are residential customers out of the 720,000 total listed above. The other 220,000 customers are Commercial and Industrial customers. Calculate the annual increase in revenue for the utility from residential customers.
  2. Calculate an estimate of what the estimated residential monthly bill would have been if the Company had been able to charge the amount on its initial request. Assume $23.9M of additional revenue is from Commercial and Industrial customers.
  3. What questions do you have with the Companys first request for a rate increase in 20 years?
  4. Should the PUC grant West Penn Power the full rate increase? How should West Penn manage its operations going forward? Support your answer with your calculations and facts provided above. Comment on how WPP might best use job-order costing to manage operations.

Please click the the link to answer the question (https://www.post-gazette.com/business/powersource/2015/03/24/First-Energy-West-Penn-Power-utility-rate-increase-two-decades/stories/201503240005#:~:text=For%20West%20Penn%20Power's%20720%2C000,%24104.62%2C%20a%2013.1%20percent%20increase)

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