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George's Dry Cleaning is considering a merger with Weezzie's Laundry Supply Stores. George's total operating costs of producing services are $790,000...

George's Dry Cleaning is considering a merger with Weezzie's Laundry Supply Stores. George's total operating costs of producing services are $790,000 for sales volume (Sg) of $4.7 Million. Weezzies total operating costs of producing services are $202,000 for a sales volume (Sw) of $2.3 million. for a sales volume of $7 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 12%. $710,000, $480,000, $152,000 or $175,000

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