following are the cost data associatedwith water purification devices.a.The initial cost of one device 20,000b. The cost of transporting one device =%3D4% of the initial cost of the device.c. The cost of installing the device andconnecting it to the water 8% of thecost of the device.d. Profit margin ratio 20% of the totalcost of a single device.e. Requited: Calculate the sales price ofthe device including transportation,installation and connection to water,using cost-based pricing.

In Cost based pricing, pricing of a product should be calculated on the basis of total cost incurred…

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following are the cost data associated with water purification devices. a.The initial cost of one device 20,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 9EA: The cost data for Evencoat Paint for the year 2019 is as follows: Using the high-low method, express...

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Question

following are the cost data associated
with water purification devices.
a.The initial cost of one device 20,000
b. The cost of transporting one device =
%3D
4% of the initial cost of the device.
c. The cost of installing the device and
connecting it to the water 8% of the
cost of the device.
d. Profit margin ratio 20% of the total
cost of a single device.
e. Requited: Calculate the sales price of
the device including transportation,
installation and connection to water,
using cost-based pricing.

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