The digby company will sell 100 units (x1000) of capacity from their deal 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? select: 1
a. $3,400,000b. $1,870,000c. $1,190,000d. $2,210,000

d. $2,210,000

Explanation:

automatic rating = 7

cost per unit = 6 + 4*7

                      = 34

worth of the capacity = 100000*34

                                    = 3400000

amount received = 3400000*(1 - 35%)

                             = $2,210,000

Therefore, The amount they receive when the capacity is sold is $2,210,000.

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