Question: what is the answer Acme Builders is considering merging with Joe's Construction to achieve economies of scope sufficient to drive the combined firms' costs down

what is the answer

Acme Builders is considering merging with Joe's Construction to achieve economies of scope sufficient to drive the combined firms' costs down by at least $500,000. Acme Builders has costs of $5,000,000 and sales of $8,000,000, and Joe's Construction has costs of $3,000,000 and sales of $5,000,000. What would be the minimum combined average cost of sales expressed as a percentage necessary to achieve the cost reduction goal? O 1) 59 percent O 2) 59.43 percent O 3) 55.82 percent O 4) 57.69 percent

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