e rapid growth of Internet retail sales, Wildhorse believes es for growth in the delivery of non-standardized boxes. The company has foxed costs of $13,868.100 pon total sales dollars even point in total sales dollars? At the break-even point, how much of the company's sales are (Use Weighted Average Contribution Margin Ratio rounded to 2 decimal places eg. 0.22 and round final 510) boxes
e rapid growth of Internet retail sales, Wildhorse believes es for growth in the delivery of non-standardized boxes. The company has foxed costs of $13,868.100 pon total sales dollars even point in total sales dollars? At the break-even point, how much of the company's sales are (Use Weighted Average Contribution Margin Ratio rounded to 2 decimal places eg. 0.22 and round final 510) boxes
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 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 O decimal places, eg. 2.510)
SUPPORT

Transcribed Image Text:(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 gervice 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
$
$
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