I just need which option would be the best to recommend. Thanks in advance.

el Imperial Devices (ID) has offered to supply the state government with one model of its security screening device at "cost plus 20 percent." ID operates a manufacturing plant that can produce 66,000 devices per year, but it normally produces 60,000. The costs to produce 60,000 devices 1-3) 1-39. Cost Data for Managerial Purposes follow. Cost per Total Cost Device $ 75 150 Production costs: Materials... Labor.............. Supplies and other costs that will vary with production ......... Indirect cost that will not vary with production ........ Variable marketing costs. Administrative costs (will not vary with production) Totals 45 $ 4,500,000 9,000,000 2,700,000 2,700,000 1,800,000 5,400,000 $26,100,000 45 30 90 $435 Chapter 1 Cost Accounting: Information for Decision Making Based on these data, company management expects to receive $522 (= $435 x 120 percent) per monitor for those sold on this contract. After completing 500 monitors, the company sent a bill (invoice) to the government for $261.000 (= 500 monitors x $522 per monitor). The president of the company received a call from a state auditor, who stated that the per monitor cost should be as follows. Materials Labor Supplies and other costs that will vary with production $ 75 150 45 $270 Therefore, the price per monitor should be $324 (= $270 x 120 percent). The state govern- ment ignored marketing costs because the contract bypassed the usual selling channels. Required What price would you recommend? Why? (Note: You need not limit yourself to the costs selected by the company or by the government auditor.) el Imperial Devices (ID) has offered to supply the state government with one model of its security screening device at "cost plus 20 percent." ID operates a manufacturing plant that can produce 66,000 devices per year, but it normally produces 60,000. The costs to produce 60,000 devices 1-3) 1-39. Cost Data for Managerial Purposes follow. Cost per Total Cost Device $ 75 150 Production costs: Materials... Labor.............. Supplies and other costs that will vary with production ......... Indirect cost that will not vary with production ........ Variable marketing costs. Administrative costs (will not vary with production) Totals 45 $ 4,500,000 9,000,000 2,700,000 2,700,000 1,800,000 5,400,000 $26,100,000 45 30 90 $435 Chapter 1 Cost Accounting: Information for Decision Making Based on these data, company management expects to receive $522 (= $435 x 120 percent) per monitor for those sold on this contract. After completing 500 monitors, the company sent a bill (invoice) to the government for $261.000 (= 500 monitors x $522 per monitor). The president of the company received a call from a state auditor, who stated that the per monitor cost should be as follows. Materials Labor Supplies and other costs that will vary with production $ 75 150 45 $270 Therefore, the price per monitor should be $324 (= $270 x 120 percent). The state govern- ment ignored marketing costs because the contract bypassed the usual selling channels. Required What price would you recommend? Why? (Note: You need not limit yourself to the costs selected by the company or by the government auditor.)