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A business rep has an opportunity to sign a one year contract with a good customer. The current price is $24 and the current variable
A business rep has an opportunity to sign a one year contract with a good customer. The current price is $24 and the current variable cost per unit is $15. The customer has agreed to enter into a contract to purchase 300 units next year. Last year they bought 375 units. The customer has agreed to pay $4 price increase over last years price to secure a steady supply of material. Should the contract be signed?
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