What cost avoidance and reduction would report

Reference no: EM132750873

One of your MRO suppliers has approached you with solid evidence that
its costs have risen, and market prices for MRO have also risen. You investigate this and find out that it is true. For safety supplies, the costs have risen on average 5%. The supplier wants a 5% price increase.

Problem a. What cost avoidance and reduction would you report if you were able to switch to different items with the same functionality and reduce the proposed 5% increase to a 2% decrease on USD 1 million?

Reference no: EM132750873

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