Building Supplies Is Considering a Merger with Tools and More

question 18

Multiple Choice

Building Supplies is considering a merger with Tools and More. Building's total operating costs of producing services are $4 million for a sales volume of $20 million. Tools' total operating costs of producing services are $1 million for a sales volume of $5 million. Suppose that synergies in the production process result in a cost of production for the merged firms totalling $4.8 million with total sales remaining unchanged. Calculate the total average cost for the merged firm.

• A) 9.6 percent
• B) 40.0 percent
• C) 19.2 percent
• D) 20.0 percent

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Definitions:

Sedentary

A lifestyle characterized by a significant amount of sitting or lying down with minimal physical activity, often linked to adverse health outcomes.

Social Support

The perception or reality of being cared for and having assistance available from other people, which can significantly impact health and well-being.

Dynamic Fitness

A state of physical health and well-being that encompasses the ability to perform daily activities with optimal energy, strength, and endurance through various types of physical activities and exercises.

Intervention Efficacy

The effectiveness of a specific intervention or treatment in achieving its intended outcomes or goals.