Use the following data for the next three questions: Line of Business Paint Hair dye Chalk Widgeta Brown Corp Revenues $35,000,000 17,000,000 44,500,000 12.000 Green Corp Revenues $10,000,000 22,000,000 2,300,000

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 29E
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Use the following data for the next three questions:
Line of Business
Paint
Hair dye
Chalk
Widgets
Brown Corp Revenues
$35,000,000
17,000,000
44,500,000
13,000,000
C. 0.31
D. 0.33
E. None of the above
Green Corp Revenues
$10,000,000
22,000,000
2,300,000
1,200,000
17. What is Brown Corp's Herfindahl Index? Round to the nearest two decimal places.
A. 0.27
B. 0.29
18. If Brown takes over Green, what will be the Herfindahl Index of the combined firm? Round
to the nearest two decimal places.
A. 0.22
B. 0.24
C. 0.26
D. 0.28
E. None of the above
Transcribed Image Text:Use the following data for the next three questions: Line of Business Paint Hair dye Chalk Widgets Brown Corp Revenues $35,000,000 17,000,000 44,500,000 13,000,000 C. 0.31 D. 0.33 E. None of the above Green Corp Revenues $10,000,000 22,000,000 2,300,000 1,200,000 17. What is Brown Corp's Herfindahl Index? Round to the nearest two decimal places. A. 0.27 B. 0.29 18. If Brown takes over Green, what will be the Herfindahl Index of the combined firm? Round to the nearest two decimal places. A. 0.22 B. 0.24 C. 0.26 D. 0.28 E. None of the above
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