The Following Information Is Available on the Average Costs of the Three

Multiple Choice

The following information is available on the average costs of the three major banks in a given local market.Bank A has assets of $10 million and average costs are 15 percent,Bank B has assets of $20 million and average costs of 13 percent while Bank C has assets of $30 million with average costs of 12 percent.Average costs are measured as a proportion of total assets.

Bank B plans to acquire Bank A and in the process cut costs by $100,000.What is the combined bank's average costs?

A) 12.00 percent.
B) 12.67 percent.
C) 13.00 percent.
D) 13.33 percent.