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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. For a sales volume of $2.15 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 17.5 percent.
Marginal Probability
The probability of a single event occurring without consideration of any other events.
Classified Department
A section within an organization or publication dealing with classified advertisements or information.
Telephone Calls
Communication attempts made using the telephone system.
Probability
The assessment of the probability that a specific event will happen.
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