Question: Below find the average cost information for two companies Assets ($M) Average Cost (%) Company 1 250 15 Company 2 325 22 Company 3 350

Below find the average cost information for two companies
Assets ($M) Average Cost (%)
Company 1 250 15
Company 2 325 22
Company 3 350 18
Company 2 is looking to acquire Company 1 & 3

If Company 2 reduces its operating costs by $40M after the merger, what will the average cost of the new company be?

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