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23 June, 09:18

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

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  1. 23 June, 11:52
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    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.
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