Problem 20-9 Calculation of Average Costs with Economies of Scope (LG20-2) George's Dry Cleaning is considering a merger with Weezzie's Laundry Supply Stores. George's total operating costs of producing services are $570,000 for sales volume (Sc) of $4.7 million. Weezzie's total operating costs of producing services are $195,000 for a sales volume (Sw) of $3 million. a. Calculate the average cost of production for the two firms. (Round your answers to 2 decimal places.) Average Cost % George's Weezzie's % b. For a sales volume of $7.7 million, calculate the reduction in production costs the merged firms need to experience such that the total average cost (ACGeorgeWeezzie) for the merged firms is equal to 9 percent. Need reduction in production costs