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Question - Acme Builders is considering merging with Joe's Construction to achieve economies of scope sufficient to drive the combined firms' costs down by at least $500,000. Acme Builders has costs of $5,000,000 on sales of $8,000,000, and Joe's Construction has costs of $3,000,000 and sales of $5,000,000. What would be the minimum combined average cost of sales expressed as a percentage necessary to achieve the cost reduction goal?
A. 57.69 percent
B. 55.82 percent
C. 59 percent
D. 59.43 percent
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