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Nesterboy [21]
3 years ago
14

Building Supplies is considering a merger with Tools and More. Building's total operating costs of producing services are $4 mil

lion for a sales volume of $20 million. Tools' total operating costs of producing services are $1 million for a sales volume of $5 million. Suppose that synergies in the production process result in a cost of production for the merged firms totalling $4.8 million with total sales remaining unchanged. Calculate the total average cost for the merged firm.
Business
1 answer:
Natalka [10]3 years ago
7 0

Answer:

We generally calculate total average cost by dividing total cost / total output units.

In this case, we are not given the output units, but instead we are given the output value, so we should find a percentage from total revenue.

total costs = $4,800,000

total revenue = $20,000,000 + $5,000,000 = $25,000,000

average total cost = ($4,800,000 / $25,000,000) x 100 = 19.2%

This means that for every $100 of revenue, the merged company will spend $19.20.

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The changes in account balances for Elder Company for 2018 are as follows: Assets $ 680,000 debit Common stock 350,000 credit Li
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Answer:

Net income will be $160000

So option (c) will be the correct answer

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<em>brainly.com/question/19040822</em>

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