Sales kit pricelist

In Order Entry someone noticed for each line in the kit there is a price, and there seem to be no correlation between the prices listed and the total price for the kit(see screenshot below).

I believe what is happening is for each item in the kit, the price is being displayed for the given quantity per the price list. The kit cost also comes from the price list and is a different record with no relationship to the pricelist entries for each of the components. That is, it’s not as if the pricelist for the kit is a sum of the pricelist records for each component, they are different records where we can specify what ever price we choose for the kit or the components. Is my understanding correct?

The pricing is set at the Part level in Price Type.

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