Brighton Papers is a producer of a variety of papers. One of its biggest markets is for plain white 8½ x 11 paper used in printers and copiers. It sells the paper in cases of 10 reams of 500 sheets. Its value chain partners and information based on a case of paper sold is in the table below.

REQUIRED:

a. Calculate the profit on sales, sales per assets, and ROA per case of paper sold for each of these players.

b. Who has the best position in the value chain? Why?

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Tree Brighton Papers Measure Pulp Mill Wholesaler Retailer Farmer Revenue $3.30 $13.20 $26.39 $43.99 $69.90 Paper cost NA NA NA $26.39 $43.99 Operating costs Margin $2.25 $10.00 $23.20 $8.53 $15.55 $1.05 $3.20 $3.19 $9.07 $10.36 Assets $7.00 $22.50 $52.75 $12.54 $69.00