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Exercise 19-8 Express Delivery is a rapidly growing delivery service. Last year, 80% of its evenue came om the delivery o mailing pouches and s
Exercise 19-8 Express Delivery is a rapidly growing delivery service. Last year, 80% of its evenue came om the delivery o mailing pouches" and s mal standardized delivery boxes which provides a 20% contribution margin). The other 20% of its revenue came from delivering non standardized boxes which provides a 70% contribution margin With the rapid growth of Internet retail sales, Express believes that there are great opportunities for gro hin the delivery of non-standardized boxes. The company has fixed costs of $13,825,000 (a) What is the company's break-even point in total sales dollars? At the break-even point, how much of the company's sales are provided by each type of service? (Use Weighted-Average Contribution Margin Ratio rounded to 4 decimal places e.g. 0.2552 and round final answers to 0 decimal places, e.g. 2,510.) Total break-even sales Sale of mail pouches and smiall boxes s Sale of non-standard boxes b The company's management would like o hold its ed costs constant but shift its sales mix so that 60% of its revenue comes om the deliver o nonstanda zed boxes and he mainder om pouches and s a boxes this were to occur, what would be the company's break-even sales, and what amount of sales would be provided by each service type? (Use Weighted-Average Contribution Margin Ratio rounded to 4 decimal places e.g. 0.2552 and round final answers to 0 decimal places, e.g. 2,510.) Total break-even sales Sale of mail pouches and small boxes s Sale of non-standardized boxes Question Attempts: 0 of 15 used
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