The Following Information Is Available on the Average Costs of the Three

question 12

Multiple Choice

The following information is available on the average costs of the three major banks in a given local market.Bank A has assets of $10 million and average costs are 15 percent,Bank B has assets of $20 million and average costs of 13 percent while Bank C has assets of $30 million with average costs of 12 percent.Average costs are measured as a proportion of total assets.

Bank B plans to acquire Bank A and in the process cut costs by $100,000.What is the combined bank's average costs?

• A)12.00 percent.
• B)12.67 percent.
• C)13.00 percent.
• D)13.33 percent.

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Definitions:

Sales Low

Refers to a period or instance when the number of products or services sold falls below expectations or past performance, often signaling a need for marketing or strategy adjustment.

Profits Negative

A financial state where a business experiences a deficit, spending more money than it is earning from its operations.

Stagnation

A period of slow or no growth in an economy, market, or industry, often marked by a decline in productivity and innovation.

Product Life Cycle

A concept that describes the stages a product goes through from its introduction to the market until its decline and eventual withdrawal.