Finance Lab Question 1

Business & Finance
Tutor: None Selected Time limit: 1 Day

Dec 8th, 2014

a Jennys = 725,000/3,700,000= 19.59%

 Lionels= 510,000/2,700,000=18.89%

b. Total cost for merged firms =1,235,000

If 18 % is to be achieved , total cost 1,152,000

Reduction should be $83,000

Production cost should be reduced by $83,000

Dec 8th, 2014

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