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28 October, 07:23

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

a. $3,400,000

b. $1,870,000

c. $1,190,000

d. $2,210,000

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Answers (2)
  1. 28 October, 08:18
    0
    Answer: c. $1,190,000

    Explanation:

    100units (X 1000) capacity

    Price per unit capacity = $6

    Automation per rating = $4

    Automation rating = 7

    Value to be recieved

    = ($6 + 7 x $4) x 100 x 1000 (0.35)

    = $34 x 100000 x 0.35

    = $1,190,000
  2. 28 October, 10:05
    0
    The question is not complete, find the below complete question:

    The Chester company will sell 100 units (x1000) of capacity from their Cat product line. Each unit of capacity is worth $6 plus $4 per automation rating. The Chester company will sell the capacity for 35% off. How much do they receive when the capacity is sold? Note: Automation rating is 7.0 per unit of capacity.

    a) $1,870,000

    b) $1,190,000

    c) $2,210,000

    d) $3,400,000

    The correct option is C,$2,210,000

    Explanation:

    Th price per unit = $6 + ($4*automating rate) as given in the question

    the price per unit=$6 + ($4*7)

    =$6+$28

    =$34

    The actual worth of capacity = price per unit*number of units

    number of units is 100,000

    price per unit is $34

    actual worth of capacity=$34*100,000

    =$3,400,000

    Actual amount received=$3,400,000 * (1-0.35)

    =$2,210,000.00

    The amount of received is $2,210,000
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