Part A:

Total break even sales $

Sale of mail pouches and small boxes $

Sale of non-standard boxes $

Part B:

Total break even sales $

Sale of mail pouches and small boxes $

Sale of non-standard boxes $

Ivanhoe 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 bowes (which provides a 70% contribution margin). With the rapid growth of Internet retail sales, Ivanhoe believes that there are great opportunities for growth in the delivery of non-standardized boxes. The company has fixed costs of $13,422,900. 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 esch type of service? (Use Weighted Average Contribution Marsin Ratio rounded to 2 decimal places eg. 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-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 eg. 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