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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, of its revenue came from the delivery of mailing "pouches" and
small, standardized delivery boxes which provides a contribution margin The other of its revenue came from delivering
nonstandardized boxes which provides a contribution margin With the rapid growth of Internet retail sales, Oriole believes
that there are great opportunities for growth in the delivery of nonstandardized boxes. The company has fixed costs of $
Sales mix is determined based upon total sales dollars.
a What is the company's breakeven point in total sales dollars? At the breakeven point, how much of the company's sales are
provided by each type of service? Use WeightedAverage Contribution Margin Ratio rounded to decimal places eg and round final
answers to decimal places, eg
Total breakeven sales
$
Sale of mail pouches and small boxes $
Sale of nonstandard boxes
$
b The company's management would like to hold its fixed costs constant but shift its sales mix so that of its revenue comes from
the delivery of nonstandardized boxes and the remainder from pouches and small boxes. If this were to occur, what would be the
company's breakeven sales, and what amount of sales would be provided by each service type? Use WeightedAverage Contribution
Margin Ratio rounded to decimal places eg and round final answers to decimal places, eg
Total breakeven sales
$
Sale of mail pouches and small boxes
$
Sale of nonstandardized boxes
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