Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please show work if possible please Sunland Delivery is a rapidly growing delivery service. Last year, 80% of its revenue came from the delivery of

please show work if possible please
image text in transcribed
Sunland Delivery is a rapidly growing delivery service. Last year, 80% of its revenue came from the delivery of mailing"pouches" and small, standardized delivery boves (which provides a 20% contribution margin). The other 20% of its revenue came from delivering non-standardized booes (Which provides a 70% contribution margin). With the rapid growth of internet retail sales, Sunland believes that there are great opportunities for growth in the deivery of non-standardized boves. The compary has fived costs of $13,425,900. Sales mix is detirmined based upon total saler dollars. (a) What is the company's break-even point in total sales dollars? At the break-even point how much of the comparry's sales are provided by each type of service? (Use Weithted-Average Contribution Margin Ratio rounded to 2 decimal ploces es. 0.22 and round final answers to 0 decimal plocks, e. 2,510) (b) The company/s management would like to hold its foved costs constant but shift its sales mix so that 60 as of its revenue comes from the delivery of non-standardized bowes and the remainder from pouches and small bookss 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 Wrightind-Average Contribution Margin Ratio rounded to 2 decimal places e.9022 and round final answers to 0 decinal places, eg 2,510. Totalbreak-evensales Sale of mail pouches and small boxes Sale of non-standardized bowes 5

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

Step: 3

blur-text-image

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

Computerized Accounting Using QuickBooks Pro 2020

Authors: Alvin A. Arens, D. Dewey Ward, Carol J. Borsum

6th Edition

0912503793, 9780912503790

More Books

Students also viewed these Accounting questions