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Co RS currently buys 30,000 units of inputs used to manufacture its product at $40 per unit. The supplier recently informed Co RS that a
Co RS currently buys 30,000 units of inputs used to manufacture its product at $40 per unit. The supplier recently informed Co RS that a 20 percent increase will take effect next year. Co RS has some additional space and could produce the units for the following per-unit costs (based on 30,000 units):
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