The national Hospital Purchasing Authority is negotiating with Clinical Services to reduce its selling price by 20%

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The national Hospital Purchasing Authority is negotiating with Clinical Services to reduce its selling price by 20% although a volume of at least 1,200 kits per month has been promised. Should Clinical Services accept this offer? If so, why? If not, what would be your suggestion in order for Clinical Services to maintain its current level of profitability?
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