The Baldwin company will sell 100 units (x1000) of capacity from their Bold prod

Question

The Baldwin company will sell 100 units (x1000) of capacity from their Bold 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? (Automation rating is 7.0) Select: 1 $1,190,000 $1,870,000 $2,210,000 $3,400,000 $1,190,000 $1,870,000 $2,210,000 $3,400,000 The Baldwin company will sell 100 units (x1000) of capacity from their Bold 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? (Automation rating is 7.0) Select: 1 $1,190,000 $1,870,000 $2,210,000 $3,400,000

Explanation / Answer

Cost per unit = 6+4*7 = 34

Worth of the capacity = 100000*34 = 3,400,000

Amount received = 3400000*(1-35%) = $2,210,000

$2,210,000

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