Calculation of Average Costs with Economies of Scope Jewelry Designs is considering a merger with Beads Supply Stores.Jewelry's total operating costs of producing services are $300,000 for sales volume of $2 million.Beads' total operating costs of producing services are $125,000 for a sales volume (JP) of $2.25 million.Calculate the average cost of production for the Jewelry and Beads firms,respectively.
A) 15 percent, 5.56 percent
B) 5.56 percent, 15 percent
C) 15 percent, 55.56 percent
D) 13.33 percent, 6.25 percent
Correct Answer:
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