MiniCo and BigCo make the same products. Annually, BigCo's Fixed Cost is $$100,000,$ Variable Cost is $$15$ and it sells $50,000$ units at a price of $$25.$ BigCo is thinking of acquiring MiniCo. After the acquisition, for the combined company $($NewCo$),$ annual Fixed Cost is expected to be $$150,000$ and units are expected to increase $40\%$ but Variable Cost and price are not expected to change. How much should BigCo pay for MiniCo so that in one year NewCo makes the same money as before after taking out the cost of the acquisition? $

Question Blank $1$ of $1$

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$($Hint: treat the cost of acquisition as a Fixed Cost$)$