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Thompson's offer is $ 480, from which we have to subtract the margins of both Southern and Thompson divisions (respectively $112 and $80), and we
Thompson's offer is $ 480, from which we have to subtract the margins of both Southern and Thompson divisions (respectively $112 and $80), and we get $288 which represents the cost for Birch Paper Company. But, how do we get these above-mentioned margins? For what concerns the Southern division, the margin is $112 which is the result of the subtraction between Thompson's direct cost, $280
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