Trp.com sells toilet paper to residential and commercial customers. The companys annual fixed costs are $145,000. The company sells a box of residential toilet paper for $15 including delivery. Residential toilet paper cost the company $5.50 plus $0.50 delivery fee. Commercial toilet paper (lower grade, big rolls designed to fit commercial dispensers) cost the company $9 per box and sells for $17, including delivery. The company sells three (3) residential boxes for every one (1) commercial box.

a) Calculate the companys weighted-average contribution margin per box of toilet paper.

b)Calculate the total number of toilet paper box sales and total sales dollars to break even.

c)Calculate the number of residential and commercial toilet paper boxes required to break even.

d)How many of each toilet paper box must the company sell to earn a target net profit of $120,000? Show the contribution margin statement to confirm your solution.

e)Due to Covid-19 and the subsequent lockdowns, residential toilet paper sales have skyrocketed. If the company now sells five (5) residential boxes to every one (1) commercial box, how many boxes of each type needs to be sold to break even?

f)Does the company now have to sell more or less boxes of toilet paper to break even, compared to pre-Covid-19? Why?