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21 December, 22:29

The Baldwin company will sell 100 units (x1000) of capacity from their Best 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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  1. 22 December, 01:22
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    Amount received = $2,210,000

    Explanation:

    given data

    sell = 100 units (x 1000)

    capacity automation rating = $6 + $4

    sell capacity = 35%

    solution

    we consider that Automation rating = 7.0

    so now we get here Cost per unit is

    Cost per unit = capacity * Automation rating ... 1

    put here value and we get

    Cost per unit = 6 + 4 * 7

    Cost per unit = 34

    and

    now we get capacity worth that is

    capacity worth = Cost per unit * sell units ... 2

    put here value

    capacity worth = 34 * 100000

    capacity worth = 3,400,000

    so

    we get now Amount received that is

    Amount received = capacity worth * (1 - sell capacity) ... 3

    put here value

    Amount received = 3400000 * (1 - 35%)

    Amount received = $2,210,000
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