Raw materials purchased $265,000 Direct labor 300,000 Actual factory overhead 198,000 Applied factory overhead 200,000 Inventories Beginning Ending Raw materials $50,000 $45,000 Work-in-process $75,000 $90,000 Finished goods $40,000 $25,000 Prime costs are:

Garrett is an executive vice president at samm hardware. he researches a proposal by a larger company, maximum hardware, to combine the two companies. by analyzing past performance, conducting focus groups, and interviewing maximum employees, garrett concludes that maximum has poor profit margins, sells shoddy merchandise, and treats customers poorly. what actions should garrett and samm hardware take? a. turn down the acquisition offer and prepare to resist a hostile takeover. b. attempt a friendly merger and use managerial hubris to improve results at maximum. c. welcome the acquisition and use knowledge transfer to impart sam hardware's management practices. d. do nothing; the two companies cannot combine without samm hardware's explicit consent.