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Abay Engineering sells returnable containers to major food processors. The price received for the containers is Br 2 per unit. Of this amount Br 1.25

Abay Engineering sells returnable containers to major food processors. The price received for the containers is Br 2 per unit. Of this amount Br 1.25 is profit contribution. Abay Engineering is considering an attempt to differentiate its product through quality improvement at a cost of 5p per unit. Current profits are Br 40,000 on sales of 100,000 units.

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