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Let x be the number of small boxes and y be the number of large boxes.
The first equation represents the total number of boxes:
x + y = 12
The second equation represents the total number of books:
20x + 45y = 340
Therefore, the system of equations is:
x + y = 12
20x + 45y = 340
These equations can be solved simultaneously to find the number of small boxes and large boxes sent to the local book retailer.