Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
Express Delivery is 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 came from delivering non standardized bees (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 delivery of non-standardized boxes. The company has found costs of $13,383,000 (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? (Us Weighted Average Contribution Margin Ratio rounded to 2 decimal pl 0.22 and round final resto decimal places, eg 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 foxed 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 bows. 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 decimal placeses 022 and round final answers to decimal pleas, es 2510) Total break even sales $ Sale of mail pouches and small boxes $ Sale of non-standardized boxes $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Trust And Governance Developing Regulation In Europe

Authors: Reiner Quick, Stuart Turley, Marleen Willekens

1st Edition

0415448905, 9780415448901

More Books

Students also viewed these Accounting questions