Dee's Dry Cleaning Is Considering a Merger with Larry's Laundry

question 117

Multiple Choice

Dee's Dry Cleaning is considering a merger with Larry's Laundry Supply Stores. Dee's total operating costs of producing services are $600,000 for sales volume of $4 million. Larry's total operating costs of producing services are $200,000 for a sales volume (JP) of $1 million. Calculate the average cost of production for Dee's and Larry's firms, respectively.

• A) 15 percent, 20 percent
• B) 20 percent, 15 percent
• C) 16 percent, 16 percent
• D) 60 percent, 5 percent

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Definitions:

Homeostasis

Maintenance of normal internal conditions in a cell or an organism by means of self-regulating mechanisms.

Metabolic Wastes

Substances left over from metabolic processes (like cellular respiration) which cannot be used by the organism and must be excreted.

Metabolic Wastes

Substances left over from metabolic processes (like respiration, digestion, and assimilation) that cannot be used by the organism and must be excreted.

Cell Metabolism

The intricate set of life-sustaining chemical transformations within the cells of living organisms, involving energy production and the synthesis of necessary compounds.