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Express 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, Express believes

that there are great opportunities for growth in the delivery of non$-$standardized boxes. The company has fixed costs of $$12,000,000.$

Sales mix is determined based upon total sales dollars.

$\text{'}($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$.0\mathrm{.}22$ and round final

answers to $0$ decimal places, e$.$g$.2,510.)$

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 e$.$g$.0\mathrm{.}22$ and wound final answers to $0$ 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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