Question 40 (Mandatory) (0.6 points) Dee's Dry Cleaning is considering a merger with Larry's Laundry Supply Stores. Dee's total operating costs of producing services are $600,000 for sales volume of $4 million. Larry's total operating costs of producing services are $200,000 for a sales volume (Jp) of $1 million. For a sales volume of $5 million, calculate the reduction in production costs the merged firms need to experience such that the total average cost (TAC) for the merged firms is equal to 10 percent. O Decrease of $300,000 Decrease of $500,000 Decrease of $100,000 O Decrease of $200,000 MI Question 42 (Mandatory) (0.6 points) If Walt Disney and American Airlines merged, it would be an example of a: conglomerate merger. consolidation merger. Oo o vertical merger. horizontal merger