The baldwin company will sell 100 units (x1000) of capacity from their brat product line. Each unit of capacity is worth $6 plus $4 per automation rating. The baldwin company will sell the capacity for 35% off. How much do they receive when the capacity is sold?
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Given:
Total units = 100
Capacity = 1000
Capacity unit worth = $6
Automation rating worth = $4
Capacity sold percentage = 35%
To find:
How much do they receive when the capacity is sold?
Solution:
As per the given data Automation rating will be 7.
Therefore -
= ( 6 + 7 × 4)
= 6 + 28
= 34
Calculating the capacity -
= 34 × 100 × 1000 × ( 1 - 35%)
= 3400000 × ( 1 - 0.35)
= 3400000 × 0.65
= 22,10,000
Answer: They will receive $22,10,000
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