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Problem 1: A company manufactures 1 million units of a product annually. A new design of the product will reduce material cost by 12%, but will increase processing cost by 2%. If materials cost is P 12//unit and processing will cost P4/unit, how much can the company afford to pay for the preparation of the new design and making changes in equipment?
Option a. P 1.36 M
Option b. P800,00
Option c. P600,000
Option d. P 505,000
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