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How much can SungSam afford to pay for a contract that would lock in a 5 0 % reduction in the unit material cost previously

How much can SungSam afford to pay for a contract that would lock in a 50% reduction in the unit material cost previously given? If SungSam does sign the contract, the sales price will not change.
a. Unit cost reduced to =$
b. Batch cost with contract =$
c. Difference in batch cost w/o and w/ contract =$
d. So the amount SungSam can pay for the contract =$
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