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An existing sporting goods manufacturer is creating a separate division to manufacture basketballs under a private label for a major retail chain.The retail chain has

An existing sporting goods manufacturer is creating a separate division to manufacture basketballs under a private label for a major retail chain.The retail chain has guaranteed an order of 5,000 basketballs per month during the first year and will pay $12 per basketball. The retailer has asked for terms that allow them to pay for its purchases in 60 days.

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