Express Delivery is a rapidly growing delivery service. Last year, 82% of its revenue came from the delivery of mailing “pouches” and small, standardized delivery boxes (which provides a 11% contribution margin). The other 18% of its revenue came from delivering non-standardized boxes (which provides a 61% 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 $12,310,000.
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Sale of Mail Pouches and Small boxes=
Sale of Non-Standard boxes=