Answer:
Results are below.
Explanation:
Giving the following information:
Machine= $800,000
Installation= $100,000
Training= $100,000
Total= 1,000,000
Denver and Public agree to a total contract price of $920,000.
First, we will determine the sales proportion:
Machine= 800,000/1,000,000= 0.8
Installation= 100,000/1,000,000= 0.1
Training= 100,000/1,000,000= 0.1
Now, we can allocate the price to each one:
Machine= 920,000*0.8= 736,000
Installation= 920,000*0.1= 92,000
Training= 920,000*0.1= 92,000
