Current Attempt in ProgressWildhorse 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 foxed costs of $13,868.100Sales 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 eg.0.22 and round finalanswers to O decimal places, eg 2.510)Total break-even salesSale of mail pouches and small boxesSale of non-standard boxes$$$(b) The company's management would like to hold its fixed costs constant but shift its sales mix so that 60% of its revenue comes fromthe delivery of non-standardized boxes and the remainder from pouches and small boxes. If this were to occur what would be thecompany's break-even sales, and what amount of sales would be provided by each service type? (Use Weighted Average ContributionMargin Ratio rounded to 2 decimal places eg. 0.22 and round final answers to O decimal places, eg. 2.510)SUPPORT (b) The company's management would like to hold its fixed costs constant but shift its sales mix so that 60% of its revenue comes fromthe delivery of non-standardized boxes and the remainder from pouches and small boxes. If this were to occur, what would be thecompany's break-even sales, and what amount of sales would be provided by each gervice type? (Use Weighted-Average ContributionMargin Ratio rounded to 2 decimal places e.g. 0.22 and round final answers to O decimal places, e.g. 2,510.)Total break-even salesSale of mail pouches and small boxesSale of non-standardized boxes$$

Weighted Contribution Margin=Contribution margin * Sales mix Contribution marginSales MixWeighted…

Answered: e rapid growth of Internet retail…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 10EB: Keleher Industries manufactures pet doors and sells them directly to the consumer via their web...

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