| Summary: | 碩士 === 中原大學 === 會計研究所 === 103 === Because of Taiwan in facing the serious drought in 2015, issues of both cherish water resources and fee pricing adjustment come up again. In the meanwhile, it also give rise to debate whether to unify fee pricing throughout Taiwan. In this paper, the objective of this study was to analyze the impact of water rate adjustments among the 12 branches of Taiwan Water Corporation. In view of the fact that the water treatment costs are different among different branches. Selling price per unit will go up when average per unit water sell yielding negative operating income in these seven branches including the First, the Fifth, and from the Seventh to the Eleventh branches. In contrast, the other branches average per unit water sold generating positive operating income, then selling price per unit should be decreased. As such, Taiwan Water Corporation can set different rates to reach its operating breakeven point.
Therefore, the more reasonable water rates in different branches can be prevented by those branches making profits to subsidize the others branches running in losses. In doing so, it can promote social fairness and justice in terminating the policy of higher water users to be subsidized by lower water use customers.
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