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Exercise 19-8 Express Delivery is a rapidly growing delivery service. Last year, 80% of its revenue came from the delivery of mailing pouches and small,
Exercise 19-8 Express 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 20% contribution margin). The other 20% of its revenue ca e from delive ng non-standardized boxes which provides a 70% contribution margin with the rapid growth of nternet re al sa es, express eves e e are great opportunities for growth in the delivery of non-standardized boxes. The company has fixed costs of $12,252,000 (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 small boxess Sale of non-standard boxes b) The company's management would like to hold its fixed costs constant but shift its sales m so hat 60% ofits revenue comes from the delivery of non-standardized boxes and the remainder from pouches and small boxes. If 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 Sale of non-standardized boxes s
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