Question
Blazer Delivery is a rapidly growing delivery service. Last year, 80% of its revenue came from the delivery of mailing pouches and small, standardized delivery
Blazer Delivery is a rapidly growing delivery service. Last year, 80% of its revenue came from the delivery of mailing "pouches" and small, standardized delivery boxes (which provides a 15% contribution margin). The other 20% of its revenue came from delivering non-standardized boxes (which provides a 75% contribution margin). With the rapid growth of Internet retail sales, Blazer believes that there are great opportunities for growth in the delivery of non-standardized boxes. The company has fixed costs of $12,976,200. Calculate the company's break-even point in total sales dollars. (Round weighted-average contribution margin ratio to 2 decimal places, eg. 15.25% and final answers to O decimal places, e.g. 125.) Break-even sales $ At the break-even point, how much of the company's sales are provided by each type of service? Sales Pouches At the break-even point, how much of the company's sales are provided by each type of service? Pouches Non-standard Sales The company's management would like to keep its fixed costs constant but shift its sales mix so that 65% of its revenue comes from the delivery of non-standardized boxes and the remainder from pouches and small boxes. Determine what the company's break-even sales would be. Break-even sales $ What amount of sales would be provided by each service if this were to occur The company's management would like to keep its fixed costs constant but shift its sales mix so that 65% of its revenue comes from the delivery of non-standardized boxes and the remainder from pouches and small boxes. Determine what the company's break-even sales would be. Break-even sales What amount of sales would be provided by each service if this were to occur. Pouches Non-standard $ Sales
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