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

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Pharoah 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, Pharoah believes that there are great opportunities for growth in the delivery of non-standardized boxes. The company has fixed costs of $12,120,000. Sales mixis 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 ploces eg. 0.22 and round final onswers to O decimal ploces, es, 2,510.) Total break-even sales Sale of mail pouches and small boxes Sale of non-standard boxes 5 $ $ (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, eg. 2,510.) (b) The compary'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-tandardized 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, eg. 2,510.) Total break-even sales $ Sale of mail pouches and small boxes Sale of non-standardized boxes

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