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Wildhorse Delivery is a rapidly growing delivery service. Last year, 8 0 % of its revenue came from the delivery of mailing pouches and small,

WildhorseDelivery 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 a20% contribution margin). The other20% of its
revenue came from delivering non-standardized boxes (which provides
a70% contribution margin). With the rapid growth of Internet
retail sales,Wildhorsebelieves that there are great
opportunities for growth in the delivery of non-standardized boxes.
The company has fixed costs of $11,940,000.
(a)What is the companys break-even point in
total sales dollars? At the break-even point, how much of the
companys sales are provided by each type of
service?(Use Weighted-Average Contribution Margin
Ratio rounded to 2 decimal places e.g.0.22 and round final answers
to 0 decimal places, e.g.2,510.)
Total break-even sales$enter the total break-even sales amount in dollarsSale of mail pouches and small boxes$enter the sale of mail pouches and small boxes in
dollarsSale of non-standard boxes$enter the sale of non-standard boxes amount in
dollars
(b)The companys management would like to
hold its fixed costs constant but shift its sales mix so
that60% 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 companys
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 e.g.0.22 and
round final answers to 0 decimal places, e.g.
2,510.)

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