Problems: Chapters 21 and 22 Suppose that a paper mill \"feeds" a downstream box mill. For the downstream mill, the marginal protability of producing boxes declines with volume. For example, the first unit of boxes increases earnings by $60, the second by $54, the third by $48, and so on, until the tenth unit increases prot by just $6. The cost the upstream mill incurs for producing enough paper (one \"unit" of paper) to make one unit of boxes is $6.50. Assume the two mills operate as separate prot centers, and the paper mill sets the price of paper. It follows that the marginal profitability of boxes represents the highest price that the box division would be willing to pay the paper division for boxes.. Furthermore, assume that xed costs are $0 for the paper mill. The following table summarizes the quantity, total revenue, and marginal costs from the perspective of the paper mill for selling paper to the box mill at various prices. In the following table, fill in the marginal revenue, total cost, and total prot for the paper mill when selling paper to the box mill at each given price. Total Marginal Price Quantity Revenue Marginal revenue Total Cost Cost Prot (Marginal Protability to (Units Of paper the BOX Ml\") equivalent to (5) One BOX) ($) (5) (5) (S) ($) $60 1 $60 $6.50 $ 4444 $54 2 $108 $ 4444 44s 3 4144 $ 4444 $42 4 $168 $ 4444 444 4 4444 4 44-44 444 4 4444 4 4444 $24 7 $168 $ 4444 414 s 4144 $ 4444 $12 9 $108 $ 44-44 44 10 460 $ If the paper mill seis the price of paper to sell to the box mill, it will set a price of 'I' and sell '7 units of paper to the box mill. Prots will be for the paper mill. Companywide prots will be marginal protability of each unit of paper, or box, to the box mill.) . (Hint: Recall that the prices in the table represent the Suppose the paper mill is forced to transfer paper to the box mill at marginal cost ($6.50). In this case, the box mill will demand 'I' uniis of paper. This leads to companywide prois of_