16 View Policies Show Attempt History Current Attempt In Progress Sandhill Delivery Is A Rapidly Growing Delivery Servic 1 (36.42 KiB) Viewed 27 times
16 View Policies Show Attempt History Current Attempt In Progress Sandhill Delivery Is A Rapidly Growing Delivery Servic 2 (26.43 KiB) Viewed 27 times
16 View Policies Show Attempt History Current Attempt in Progress Sandhill 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, Sandhill believes that there are great opportunities for growth in the delivery of non-standardized boxes. The company has fixed costs of $13,350,000 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, eg, 2,510) Total break-even sales $ Sale of mail pouches and small boxes $ Sale of non-standard boxes $
Sale of non-standard boxes (b) The company's management would like to hold 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. 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 eg. 0.22 and round final answers to decimal places, eg: 2,510) Total break-even sales $ Sale of mail pouches and small boxes $ Sale of non-standardized boxes $
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