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Express Delivery is a rapidly growing delivery service. Last yoar, 807 of its revenue came from the delivery of mailing pouches and smallatandardized delivery boxes
Express Delivery is a rapidly growing delivery service. Last yoar, 807 of its revenue came from the delivery of mailing "pouches" and smallatandardized delivery boxes (which provides a 20% contribution margin). The other 20% of its revenue came from delivering non-standardired bowes (which provides a 705 contribution margin). With the ragid growth of Internet retail sales, Express believes that there are areat opportunities for growth in the delivery of non-standardized boxes. The company has fixed costs or $12,2,37,900. (a) What is the company's break-even point in total sales dollars? At the break-even point, bow much of the compary's sales are provided by each type of service? (Use Weighted Average Contribution Margin Ratio rounded to 2 decimal ploces es. 0.22 and round final answers to 0 decimol ploces, ez. 2.510. Total breakewensales Sale of mail pouches and small boxes 5 Ssle of non-standard boxes (b) The company's management would like to hold its fixed costs constant but shift its sales mix so that 60% of its 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-Averoge Contribution Margin Ratio rounded to 2 decimal places e.g. 0.22 and round final answers to 0 decimal places, es. 2,510.) Total break-even sales Sale of mail pouches and small boxes \$ $ Sale of non-standardized boxes
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