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A company manufactures 1,500,000 units of a product yearly. A new design of the product will reduce materials cost by 20% but will increase processing

A company manufactures 1,500,000 units of a product yearly. A new design of the product will reduce materials cost by 20% but will increase processing cost by 8%. If materials cost is 10.00 per unit and processing will cost 0.50 per unit, how much can the company afford to pay for the preparation of the new design and making changes in equipment?

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