Acompany will sell 100 units (x1000) of capacity from its product line. each unit of capacity is worth $6 plus $4 per automation rating. the company will sell the capacity for 45% off. how much do they receive when the capacity is sold?

The company received $550,000 after the capacity was sold

Explanation:

Step 1: Determine the total number of units.

The expression for the total number of units is as follows;

Total number of units=number of capacity×number of units per capacity

where;

number of capacity=1,000

number of units per capacity=100 units

replacing;

Total number of units=100×1,000=100,000 units

Step 2: Determine the total cost of sales

Total cost of sales=Total number of units(Cost per capacity+cost per automation ring)

where;

Total number of units=100,000 units

Cost per capacity=$6

Cost per automation ring=$4

replacing;

Total cost of sales=100,000(6+4)=$1,000,000

The company sold capacity at $1,000,000

Step 3: Determine the total cost of sales after discount

Total cost of sales after discount=1,000,000-(45% of 1,000,000)

Total cost of sales after discount=1,000,000-(0.45×1,000,000)=1,000,000-450,000=$550,000

The company received $550,000 after the capacity was sold

reducing the scale of the market for a new product.