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Crane Inc. has annual sales of $ 4 0 million. Direct material costs are $ 1 6 million, direct labor costs are $ 1 0
Crane Inc. has annual sales of $ million. Direct material costs are $ million, direct labor costs are $ million and overhead costs amount to $ million. This leaves $ million in profit annually. The company completed negotiations with a first tier supplier to reduce direct material costs by $ million annually. If all other costs remain the same, how much profit will the company gain in this negotiation? Provide percentage and dollar amount in your answer Answer to include comparison of all costs and profit amounts.
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