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Sheridan Delivery is a rapidly growing delivery service. Last year, 80% of its revenue came from the delivery of mailing pouches and small, standardized delivery
Sheridan 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, Sheridan believes that there are great opportunities for growth in the delivery of non-standardized boxes. The company has fixed costs of $13,680,000. Calculate the company's break-even point in total sales dollars. (Round weighted-average contribution margin ratio to 2 decimal places, e.g. 15.25% and final answers to O decimal places, e.g. 125.) Break-even sales $ At the break-even point, how much of the company's sales are provided by each type of service? Sales Pouches $ Non-standard $ The company's management would like to keep 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. Determine what the company's break-even sales would be. (Round weighted-average contribution margin ratio to 2 decimal places, e.g. 15.25% and final answers to O decimal places, e.g. 125.) Break-even sales $ What amount of sales would be provided by each service if this were to occur. Sales Pouches $ Non-standard $
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