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Express Delivery is a rapidly growing delivery service. Last year, 80% of its revenue came trom the delivery of mailing pouches and small, standardized delivery

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Express Delivery is a rapidly growing delivery service. Last year, 80% of its revenue came trom the delivery of mailing "pouches" and small, standardized delivery bowes (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 growth in the dellivery of non-standardized boxes. The company has fixed costs of $12,000.000. Sales mix is determined based upon total sales dollars. (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 2 decimal ploces eg. 0.22 and round final answers to 0 decimal places, es. 2.510 .3 (b) The company's management would like to hold its fored costs constant but shift its sales mix so that 600 s of its revenue comes from the delivery ot non-standardized bowes and the remainder from pouches and small boxes. If this were to occur, what would be the company break even sales, and what amount of sales would be provided by each service type? (Use Welghited Averoge Contribution Margin Ratio rounded to 2 decimal ploces ess 0.22 and round finar answers to 0 decimal places, eg. 2.510. (b) The company's management would tike to hold its fored costs constant but shift its sales mix so that 60% of its revenue comes from. the delivery of non-standardized bowes 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 ty each service type? (Use Weighted-Average Contribution Mergin Retio reunded to 2 decimal ploces es. 0.22 and round final anowers to 0 decimal ploces, es. 2,510). Total break-evensales Sale of mail pouches and small bowes 5 Sale of non-standardized boxes

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