Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 5 of 6 ./12 View Polides Current Attempt in Progress Pharoah Delivery is a rapidly growing delivery service Last year, 80% of its revenue

image text in transcribed
Question 5 of 6 ./12 View Polides Current Attempt in Progress Pharoah Delivery is a rapidly growing delivery service Last year, 80% of its revenue came from the delivery of maling 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 margini. With the rapid growth of Internet retail sales, Pharoah believes that there are great opportunities for growth in the delivery of non-standardized bones. The company has found costs of 513,413.900 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 each type of service? (Use Weighted Average Contribution Margin Ratio rounded to 2 decimal places es 0.22 and round final answers to decimal places, es 2.510) Total break-even sales 5 Sale of mail pouches and small boxes S Sale of non-standard boxes (b) The company's management would like to hold its foed costs constant but shiftits sales mixso that 60% of its revenue comes from the delivery of non-standardized boxes and the remainder from pouches and small bores. 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 es 0.22 and round final answers to decimal places, es 2.510) Total break-even sales $ Sale of mail pouches and small bowe $ Sale of non-standardized bones 5 eTextbook and Media Attempts of 3 used SA

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

High Performance Cloud Auditing And Applications

Authors: Keesook J. Han, Baek-Young Choi, Sejun Song

1st Edition

1493944355, 978-1493944354

More Books

Students also viewed these Accounting questions

Question

The company has fair promotion/advancement policies.

Answered: 1 week ago