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Crib World Is Considering a Merger with Tots Supply Stores

question 87

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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.


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1980s

A decade characterized by significant cultural, political, and technological developments, spanning from 1980 to 1989.

1990s

A decade marked by significant global events, technological advancements, and cultural shifts, spanning from 1990 to 1999.

Social Deviations

Noncriminal departures from norms that are nonetheless subject to official control. Some members of the public regard them as somewhat harmful, whereas other members of the public do not.

Tougher Penalties

Increased severity of punishments or consequences for criminal activities aimed at deterring crime.

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