Multiple Choice
Cindy's Computer Corp.is considering a merger with Bobby's Hard Drive,Inc.Cindy's total operating costs of producing services are $2.1 million for a sales volume (SC) of $13 million.Bobby's total operating costs of producing services are $2.5 million for a sales volume (SB) of $7 million.If the two firms merge,calculate the total average cost (TAC) for the merged firm assuming no synergies.
A) 23 percent
B) 17 percent
C) 19 percent
D) 21 percent
Correct Answer:
Verified
Correct Answer:
Verified
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