(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 fromthe delivery of non-standardized boxes and the remainder from pouches and small boxes. If this were to occur, what would be thecompany's break-even sales, and what amount of sales would be provided by each service type? (Use Weighted-Average ContributionMargin Ratio rounded to 2 decimal places e.g. 0.22 and round final answers to O decimal places, e.g. 2,510.)Total break-even salesSale of mail pouches and small boxesSale of non-standardized boxes$%24%24 Wildhorse Delivery is a rapidly growing delivery service. Last year, 80% of its revenue came from the delivery of mailing "pouches" andsmall, standardized delivery boxes (which provides a 20% contribution margin). The other 20% of its revenue came from deliveringnon-standardized boxes (which provides a 70% contribution margin). With the rapid growth of Internet retail sales, Wildhorse believesthat there are great opportunities for growth in the delivery of non-standardized boxes. The company has fixed costs of $13,868,100.Sales mix is determined based upon total sales dollars.(a) What is the company's break-even point in total sales dollars? At the break-even point, how much of the company's sales areprovided by each type of service? (Use Weighted-Average Contribution Margin Ratio rounded to 2 decimal places e.g. 0.22 and round finalanswers to O decimal places, e.g. 2,510.)Total break-even sales$Sale of mail pouches and small boxes24Sale of non-standard boxes$

Solution:- Given, Wildhorse Delivery is a rapidly growing delivery service. Last year, 80% of its…

(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 e.g. 0.22 and round final answers to O decimal places, e.g. 2,510.) Total break-even sales Sale of mail pouches and small boxes $ Sale of non-standardized boxes %24 %24

(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 e.g. 0.22 and round final answers to O decimal places, e.g. 2,510.) Total break-even sales Sale of mail pouches and small boxes $ Sale of non-standardized boxes %24 %24

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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What is the answer for number 20?
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Miko Firm is assessing its cost structure. It has P680.000 in fixed operating costs, P5.80 in variable costs per unit produced, and its goods sell for P9.00 per unit. What is the company's breakeven point, or the point at which profits equals costs in terms of unit sales volume? * Your answer
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Current Attempt in Progress Wildhorse 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, Wildhorse believes that there are great opportunities for growth in the delivery of non-standardized boxes. The company has foxed costs of $13,868.100 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 O decimal places, eg 2.510) Total break-even sales Sale of mail pouches and small boxes Sale of non-standard…
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