Cathy Corp

question 75

Multiple Choice

Cathy Corp. is considering a merger with Russell, Inc. Cathy's total operating costs of producing services are $200,000 for a sales volume (SC) of $700,000. Russell's total operating costs of producing services are $400,000 for a sales volume (SB) of $1 million. If the two firms merge, calculate the total average cost (TAC) for the merged firm assuming no synergies.

• A) 28.57 percent
• B) 35.29 percent
• C) 40.00 percent
• D) 68.57 percent

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Definitions:

Voiding

The process of urination or excreting urine from the bladder.

Hematuria

The presence of blood in the urine, which can be a sign of various conditions affecting the urinary tract or kidneys.

Urge to Void

The feeling of needing to urinate.

In-dwelling Catheter

A catheter that remains inserted in the urinary bladder for continuous urine drainage over a period of time.