Im terrible at Mercenaries! I heard if you discard your handgun, (Anyone with a handgun and a shotgun) when you kill someone you are more likley to get more shells, and healing items.
Your best option, (this is the way I did it) is to give Sheva the flamethrower, distract the boss, but at the same time, you should hit his weak points. (they stand out, so theres no excuse for not seeing them)
Hope that helps!;)
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