Quote Originally Posted by drone
I have dropped a full 60-man un-teched unit of guys onto a depleted 5 man stack with gold sword/shield, and never seen the armor/weapon level "average" or drop. I don't know about morale upgrades, I would assume that is unit based since the whole unit decides as one to rout or hold, and I'm fairly certain valor is stored individually. But as far as I can tell, weapon and armor upgrades are on a per unit basis.

The merging for weapon/armor upgrades was posted before, can't find it with search, but I'm sure one of the more senior players could verify with the details (and hopefully clarify morale merges). You can always experiment to see for yourself as well. The fact that the auto-merge does it the "wrong" way is sneaky though.
oh, seems like I confused the valor calculation with the upgrade stuff. thanks for clarifying! To me it looks a little like cheating so I won't do it too often but it's good to know anyway