What would be the minimum combined average cost of sales


Acme Builders is considering merging with Joe’s Construction to achieve economies of scope sufficient to drive the combined firm’s 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?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What would be the minimum combined average cost of sales
Reference No:- TGS02248928

Expected delivery within 24 Hours