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4 October, 06:09

The Digby company will sell 100 units (x1000) of capacity from their Daft 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

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  1. 4 October, 07:37
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    Answer: $2,210,000

    Explanation:

    The company will sell at full cost per Automation rating which is not provided.

    The Comp-XM Inquirer shows this Automation rating to be 7.

    The Total Cost per Automation rating is,

    = $6 + ($4 * 7)

    = $34

    Selling 100,000 units gives

    = 100,000 * 34

    = $3,400,000

    Selling at 35% off.

    = 3,400,000 * (1 - 0.35)

    = $2,210,000
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