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Calculation of Average Costs with Economies of Scope Jan's Bakery is considering a merger with Tina's Cookies. Jan's total operating costs of producing services are
Calculation of Average Costs with Economies of Scope Jan's Bakery is considering a merger with Tina's Cookies. Jan's total operating costs of producing services are $400,000 for a sales volume of $3.0 million. Tina's total operating costs of producing services are $85,000 for a sales volume of $700,000. If the two firms merge, calculate the total average cost for the merged firm assuming no synergies. (Round your answer to 2 decimal places.)
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