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Shaw and Maya agree to a total contract price of $920,000. How much of the contract price should Maya allocate to the machine, installation, and training, respectively?

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Answer: $736,000; $92,000; $92,000

User Michiel Overtoom
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Answer: $736,000; $92,000; $92,000

Step-by-step explanation:

The amount allocated will be proportional based on the cost of each when in a separate contracts.

Total when in separate contracts = 800,000 + 100,000 + 100,000

= $1,000,000

Proportion of Machine = 800,000/1,000,000

= 8/10

Proportion of Installation = 100,000/1,000,000

= 1/10

Proportion of Training = 100,000/1,000,000

= 1/10

Cost to allocate to Machine

= 8/10 * 920,000

= $736,000

Cost to allocate to Installation

= 1/10 * 920,000

= $92,000

Cost to allocate to Training

= 1/10 * 920,000

= $92,000

Shaw and Maya agree to a total contract price of $920,000. How much of the contract-example-1
User Ashish John
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