How should DSW respond to its customer with respect to the sourcing proposal considering that the current

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How should DSW respond to its customer with respect to the sourcing proposal considering that the current part was sourcing with 18 percent gross profit and 3.5 percent pretax, and was two years into a four-year contract with 4 percent annual price reductions; and that the new part was quoted at 17 percent and 3 percent profits rates and 3.5 percent annual price reductions.

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