Examlex

Solved

Crib World Is Considering a Merger with Tots Supply Stores

question 87

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. 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.


Definitions:

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.

Related Questions