Math Practice for Economics cont. Calculating the Monetary Effects of Mergers NAME DATE CLASS + Single Company Horizontal Merger Vertical Merger Revenue $2,600,000 $5,200,000 $3,000,000 Costs: Staff Salaries $180,000 $1,200,000 $200,000 Cost of Goods Sold $1,400,000 $2,800,000 $800,000 Advertising $60,000 $30,000 $60,000 Overhead $25,000 $50,000 $25,000 Miscellaneous Expenses $20,000 $40,000 $20,000 Total Costs Profit Based on this information, which merger option, if either, should you accept? Why