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:

ExxonMobil

An American multinational oil and gas corporation, one of the world's largest publicly traded energy providers and chemical manufacturers.

London Dumping Convention

An international agreement aiming to control pollution of the sea by dumping and to encourage the disposal of waste on land.

Toxic Pollutants

Substances that are harmful or poisonous to living organisms and can cause damage to the environment or human health.

Radioactive Wastes

Hazardous waste materials that are radioactive and require special disposal methods to protect living beings and the environment.