Sheridan Delivery is a rapidly growing delivery service. Last year, 80% of its revenue came from the delivery of mailing pouches 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, Sheridan believ that there are great opportunities for growth in the delivery of non-standardized boxes. The company has fixed costs of $12,981,90 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 e.g. 0.22 and round finall answers to 0 decimal places, eg. 2,510)

Sheridan Delivery is a rapidly growing delivery service. Last year, 80% of its revenue came from the delivery of mailing pouches 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, Sheridan believ that there are great opportunities for growth in the delivery of non-standardized boxes. The company has fixed costs of $12,981,90 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 e.g. 0.22 and round finall answers to 0 decimal places, eg. 2,510)

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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