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KCE buys goods from an overseas supplier. It has recently taken delivery of 1 , 0 0 0 units of component x . The quoted

KCE buys goods from an overseas supplier. It has recently taken delivery of 1,000 units of component x. The quoted price of component x was $1,200 per unit but KCE has negotiated for a trade discount of 5% due to the size of the order. Import duties of $60 per unit must be paid before the goods are released through custom. Once the duties are paid, KCE must pay a delivery cost of 45,000 to have it transported to his warehouse.
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