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The supply chain management team reviewed all the raw material costs and determined if they change the packaging on another product they make, they will
The supply chain management team reviewed all the raw material costs and determined if they change the packaging on another product they make, they will be able to save an additional $.04 per unit on the cost of materials by sharing the same packaging. The change will require an additional $3,000 be added to the expansion costs for the packaging equipment upgrade. How much does this change save or cost the company? Should this change be granted?
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