Question

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

Answer 1

Answer: $2,210,000

Step-by-step 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