Flowers Galore Is Considering a Merger with Balloons N More

question 6

Multiple Choice

Flowers Galore is considering a merger with Balloons N More. Flowers Galore's total operating costs of producing services are $800,000 for a sales volume of $3 million. Balloons' total operating costs of producing services are $60,000 for a sales volume of $100,000. If the two firms merge, calculate the total average cost for the merged firm assuming no synergies.

• A) 26.67 percent
• B) 27.74 percent
• C) 43.34 percent
• D) 60.00 percent

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Definitions:

Primary Sex Characteristics

Characteristics associated with the development of the organs and structures of the body that directly relate to reproduction.

Sexual Maturity

The stage of development where an individual is physiologically capable of reproductive activity.

Young Old

A demographic term referring to older adults typically aged 65 to 74 who are often in relatively good health and active.

Oldest Old

A demographic term referring to individuals who are 85 years of age or older, often associated with increased health care needs and challenges.