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The corrugated division of a company is a supplier to the assembly division that company. Each division operates as profit centers. The marginal revenue and

The corrugated division of a company is a supplier to the assembly division that company. Each division operates as profit centers. The marginal revenue and marginal costs for

each are shown in the table below. Note that the Assembly division adds $

10

in additional costs above what it pays to the Corrugated division for its materials.

What will be the corporate profits under this system and percentage return?

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