Answer:
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
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
