Exam #$3-$ Chapters $17,18,19,20$ Spring $2024$

Question $12$ of $20$

$\frac{-}{7\mathrm{.}5}$

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Ivanhoe 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, Ivanhoe believes that there are great opportunities for growth in the delivery of non$-$standardized boxes. The company has fixed costs of $$13,422,900.$ 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$.0\mathrm{.}22$ and round final answers to $0$ decimal places, e$.$g$.2,510.)$

$($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