Growth in the delivery of non-standardized boxes

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Reference no: EM133392266

Question: Sheridan 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, Sheridan believes that there are great opportunities for growth in the delivery of non-standardized boxes. The company has fixed costs of $13,680,000.

Reference no: EM133392266

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