Cathy Corp

question 75

Multiple Choice

Cathy Corp. is considering a merger with Russell, Inc. Cathy's total operating costs of producing services are $200,000 for a sales volume (SC) of $700,000. Russell's total operating costs of producing services are $400,000 for a sales volume (SB) of $1 million. If the two firms merge, calculate the total average cost (TAC) for the merged firm assuming no synergies.

• A) 28.57 percent
• B) 35.29 percent
• C) 40.00 percent
• D) 68.57 percent

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Definitions:

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The acquisition of knowledge or skills through experience, study, or by being taught.

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Focusing visual attention on selective aspects of the environment while ignoring others, a form of selective attention.

Attention

The concentration of awareness on some phenomenon to the exclusion of other stimuli.

Memory Process

The series of processes involved in the encoding, storing, and retrieving of memories.