Calculation of Average Costs with Economies of Scope Dee's Dry

Calculation of Average Costs with Economies of Scope Dee's Dry Cleaning is considering a merger with Larry's Laundry Supply Stores.Dee's total operating costs of producing services are $600,000 for sales volume of $4 million.Larry's total operating costs of producing services are $200,000 for a sales volume (J_P) of $1 million.Calculate the average cost of production for the Dee's and Larry's firms,respectively.

A) 15 percent, 20 percent
B) 20 percent, 15 percent
C) 16 percent, 16 percent
D) 60 percent, 5 percent