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E19-8 Express Delivery is a rapidly growing delivery service. Last year, 80% of its rev- enue came from the delivery of maili
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Express Delivery
Calculation of Weighted average Contribution margin Pouches Delivery boxes Total Note
Sales Mix 80.00% 20.00% A
Contribution margin 20.00% 70.00% B
Weighted average Contribution margin 16.00% 14.00% 30.00% C=A*B
Total Fixed costs    12,000,000.00 D
Break even sales $ 40,000,000.00 E=D/C
Calculation of Weighted average Contribution margin Pouches Delivery boxes Total Note
Sales Mix 40.00% 60.00% F
Contribution margin 20.00% 70.00% See B
Weighted average Contribution margin 8.00% 42.00% 50.00% G=F*B
Total Fixed costs    12,000,000.00 See D
Break even sales $ 24,000,000.00 H=D/G
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