Blinds N Such Is Considering a Merger with Window Supply

question 107

Multiple Choice

Blinds N Such is considering a merger with Window Supply Stores. Blinds' total operating costs of producing services are $750,000 for sales volume of $6 million. Window's total operating costs of producing services are $100,000 for a sales volume (JP) of $1 million. Calculate the average cost of production for the Blinds and Window firms, respectively.

• A) 10 percent, 12.5 percent
• B) 12.5 percent, 10 percent
• C) 75 percent, 1.67 percent
• D) 13.93 percent, 13.93 percent

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