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Discussion

For that same utility, collecting on 90 per cent of what it bills gives an aggregate technical and commercial loss of about

  • A.10 per cent
  • B.32 per cent
  • C.30 per cent
  • D.22 per cent

Answer: C

Seventy-eight per cent billed multiplied by ninety per cent collected leaves 70.2 per cent realised, so the aggregate loss is 29.8 per cent. The two components compound rather than add, which is why the combined figure is the meaningful one.

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