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Oriole Delivery is a rapidly growing delivery service. Last year, 8 0 % of its revenue came from the delivery of mailing pouches and small,

Oriole 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 came from delivering
non-standardized boxes (which provides a 70% contribution margin). With the rapid growth of Internet retail sales, Oriole believes
that there are great opportunities for growth in the delivery of non-standardized boxes. The company has fixed costs of $13,383,000.
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 places e.g.0.22 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-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-Average Contribution
Margin Ratio rounded to 2 decimal places e.g.0.22 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
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