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Material price per unit at a constant

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In 2015, Juanita secured a 5-year contract with a supplier, which sets the material price per unit at a constant for 5 years. She suggested Msungu do the same for the Basic 10F but he replied, "I love the social aspect of the meetings and haggling over price each year and this flexibility motivates me to try to reduce the price of materials each year. I have no qualms in changing suppliers for the Basic 10F, in fact I just spoke with a representative from the Venezuelan government who suggested they could beat any price for materials by 10% in 2018." I am not sure what the last sentence mean, does it mean the material price will go up 10%? or decrease 10%

Reference no: EM132149564

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