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Assume that EEG Company wanted to reduce the cost of materials handling in each of its stores, and management set a target reduction of 5

Assume that EEG Company wanted to reduce the cost of materials handling in each of its stores, and management set a target reduction of 5 percent per year. If a given store has current annual materials handling costs of $100,000 and expected an increase next year due to 20 percent growth, the budget for next year would be:

A.

$225,400

B.

$114,000

C.

$230,000

D.

$196,000

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