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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
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 citypaysaflat rate per thousandgallonsof water purchased and that the fiscal year beginson July1. Payment is made in the month
after use. Preparequarterlyallotmentsfor$8 millionappropriatedfor water.
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