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Calculation of Average Costs with Economies of Scope Blinds N

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Calculation of Average Costs with Economies of Scope 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. For a sales volume of $7 million, calculate the reduction in production costs the merged firms need to experience such that the total average cost (TAC) for the merged firms is equal to 12%.

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Definitions:

Trans Face

In the Golgi apparatus, it refers to the side where modified proteins and lipids are sorted and packed for transport to their destinations.

Golgi Complex

An organelle in cells that modifies, sorts, and packages proteins and lipids for storage or transport out of the cell.

Ribosomes

Cell organelles that function as the site of protein synthesis, translating messenger RNA into proteins.

Modified

Altered or changed in form, structure, or characteristics, often through human intervention or natural processes.

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