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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 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 wo and w contract $
d So the amount SungSam can pay for the contract $
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