The Digby company will sell 100 units (x1000) of capacity from their Deal product line. Each unit of capacity is worth $6 plus $4 per automation rating. The Digby company will sell the capacity for 35% off. How much do they receive when the capacity is sold? Select: 1

a. $3,400,000b. $1,870,000c. $1,190,000d. $2,210,000

Question

Michelle Dudley

Business

31 December, 00:18

The Digby company will sell 100 units (x1000) of capacity from their Deal product line. Each unit of capacity is worth $6 plus $4 per automation rating. The Digby company will sell the capacity for 35% off. How much do they receive when the capacity is sold? Select: 1

a. $3,400,000b. $1,870,000c. $1,190,000d. $2,210,000

+3

Answers (1)

Know the Answer?

Malaki Keith · Answer 1

d. $2,210,000

Explanation:

automatic rating = 7

cost per unit = 6 + 4*7

= 34

worth of the capacity = 100000*34

= 3400000

amount received = 3400000 * (1 - 35%)

= $2,210,000

Therefore, The amount they receive when the capacity is sold is $2,210,000.