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 (S_C) of $13 million. Bobby's total operating costs of producing services are $2.5 million for a sales volume (S_B) of $7 million. If the two firms merge, calculate the total average cost (TAC) for the merged firm assuming no synergies.

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The Answer of 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 (S_C) of $13 million. Bobby's total operating costs of producing services are $2.5 million for a sales volume (S_B) of $7 million. If the two firms merge, calculate the total average cost (TAC) for the merged firm assuming no synergies.