Answer:
The company received $550,000 after the capacity was sold
Explanation:
Step 1: Determine the total number of units.
The expression for the total number of units is as follows;
Total number of units=number of capacity×number of units per capacity
where;
number of capacity=1,000
number of units per capacity=100 units
replacing;
Total number of units=100×1,000=100,000 units
Step 2: Determine the total cost of sales
Total cost of sales=Total number of units(Cost per capacity+cost per automation ring)
where;
Total number of units=100,000 units
Cost per capacity=$6
Cost per automation ring=$4
replacing;
Total cost of sales=100,000(6+4)=$1,000,000
The company sold capacity at $1,000,000
Step 3: Determine the total cost of sales after discount
Total cost of sales after discount=1,000,000-(45% of 1,000,000)
Total cost of sales after discount=1,000,000-(0.45×1,000,000)=1,000,000-450,000=$550,000
The company received $550,000 after the capacity was sold
