13 George's Dry Cleaning is considering a merger with Weezzie's Laundry Supply Stores.George's total operating costs of producing services are $670,000 for sales volume (SG)of $5.7 million. Weezzie's total operating costs of producing services are $240,000 for asales volume (SW) of $2 million.a. Calculate the average cost of production for the two firms. (Round your answers to 2decimal places.)George'sWeezzie'sAverage costb. For a sales volume of $7.7 million, calculate the reduction in production costs themerged firms need to experience such that the total average cost (TAC) for themerged firms is equal to 11 percent.Needed reduction inproduction costs

Operating costs are one of the most important costs for any business. It is the costs and expenses…

Answered: George's Dry Cleaning is considering a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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