50.1K

Verified Solution

Link Copied!

omework Question 7 of 10 - /10 E View Policies Current Attempt in Progress Sunland 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, Sunland believes that there are great opportunities for growth in the delivery of non-standardized boxes. The company has fixed costs of $13,640,100. 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 eg. 0.22 and round final answers to decimal places, es, 2,510.) $ Total break-even sales $ Sale of mail pouches and small 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 es, 0.22 and round final answers to decimal places, eg. 2,510.) $ Total break-even sales MacBook Pro .. Question 7 of 10 - / 10 provided by each type of service? (Use Welshted 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-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 combany'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, es 2,510) Total break-even sales $ Sale of mail pouches and small boxes $ Sale of non-standardized boxes eTextbook and Media Attempts: 0 of 3 used Submit Answer Save for Later MacBook Pro so 260 F F # NO SE %% C C A. & ? ) 0

Answer & Explanation Solved by verified expert

See Answer