Answer:
correct option is C. $2,210,000
Explanation:
given data
sell units = 100 units (× 1000) = 100000 units
capacity worth = $6 + $4 per automation rating
sell capacity is = 35%
Automation rating = 7.0
to find out
How much do they receive when the capacity is sold
solution
first we get here first Cost per unit that is
Cost per unit = $6 + $4 per automation rating ...................1
Cost per unit = $6 + $4 × 7
Cost per unit = $34
and capacity worth will be here as
capacity worth = Cost per unit × sell units ...................2
put here value we get
capacity worth = $34 × 100000
capacity worth = $3,400,000
so that here Amount received will be as
Amount received = capacity worth × ( 1 - sell capacity ) .................3
put here value we get
Amount received = $3400000 × ( 1 - 35% )
so they receive when the capacity is sold = $2,210,000
so correct option is C. $2,210,000
