Find the combined average costs of two nearby competitors

Reference no: EM131954877

Question: Carl's Tires is planning to merge with Joe's Body Shop to offer a combined auto repair service shop. Carl's Tires has total costs of $1,500,000 and sales of $2,000,000, while Joe's Body Shop features costs of $2,200,000 and sales of $4,000,000. The combined firms will be able to achieve economies of scope sufficient to reduce costs by $400,000 while maintaining sales at current levels. Calculate the difference between the percentage values of the average costs of the merged firms and the combined average costs of two nearby competitors. These competitors continue to sell tires and do auto repair separately, having total costs of $2,000,000 and sales of $2,500,000, $2,400,000, and $3,200,000, respectively.

Reference no: EM131954877

Questions Cloud

Describe whether unions are gaining in membership : Describe whether unions are gaining or declining in membership. Has it changed over the recent past and if so, what has fueled the change.

What are the net interest rates of carter : Carter Enterprises can issue floating-rate debt at LIBOR + 2 percent or fixed-rate debt at 10.10 percent. Brence Manufacturing can issue floating-rate debt.

At what constant rate is the stock expected to grow : Carnes Cosmetics Co.'s stock price is $38.37, and it recently paid a $2.25 dividend. This dividend is expected to grow by 21% for the next 3 years.

What is the maximum dollar purchase you can make : If the initial margin requirement is 55 percent, what is the maximum dollar purchase you can make? with explain please.

Find the combined average costs of two nearby competitors : Calculate the difference between the percentage values of the average costs of the merged firms and the combined average costs of two nearby competitors.

How much of cash flow is return on investment : how much of each year’s cash flow is recovery of the $13,000 investment and how much of the cash flow is return on investment

Calculate the required rate of return : Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 4.1% rate of inflation in the future.

Write the null hypotheses for a parametric hypothesis test : 401077 Introduction to Biostatistics Assignment - Write the null and alternate hypotheses for a parametric hypothesis test, fully defining any symbols

What would be the required rate of return : If the value of a common stock was $97 per share and dividends were recently $2.80, but expected to grow at 4% per year, what would be the required rate.

User Account

All Pages