Crib World Is Considering a Merger with Tots Supply Stores

question 52

Multiple Choice

Crib World is considering a merger with Tots Supply Stores. Crib's total operating costs of producing services are $250,000 for sales volume of $1.25 million. Tots' total operating costs of producing services are $210,000 for a sales volume (JP) of $900,000. Calculate the average cost of production for the Crib and Tots firms, respectively.

• A) 20 percent, 23.33 percent
• B) 23.33 percent, 20 percent
• C) 27.78 percent, 16.8 percent
• D) 21.4 percent, 21.4 percent

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Definitions:

Gonads

The reproductive organs: namely, in women the ovaries, and in men the testes.

Thymosin

A hormone that promotes the production of certain lymphocytes.

T Cells

A type of white blood cell that plays a central role in the body's immune response by attacking infected or cancerous cells.

Thymus

A gland that lies between the lungs. It secretes a hormone called thymosin.