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69 The production director has suggested the following change for the costing of the new unit:
Currently material costs are 20% of the variable production costs per unit. One of the
materials used is stainless steel which is budgeted at $2,000 per unit but an alternative corrosion-resistant metal costing 25% less can be used. The production director believes a 15% discount can be negotiated for the remainder of the materials.
What would be the revised material cost per unit (to the nearest whole $)?
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