Hw Score: 0%, 0 of 1 pt Score: 0 of 1 pt Metrics 10.2 Question Help * Tyson Food

Question

Hw Score: 0%, 0 of 1 pt Score: 0 of 1 pt Metrics 10.2 Question Help * Tyson Foods is the largest U.S beef and chicken supplier, processing more than 100,000 head of cattle and 40-plus million chickens weekly Primary distribution channels are into convenience stores There are almost 150,000 gas stations and convenience stores where the company would like to sell hot Buffalo chicken bites near the checkout. This is a promising channel, as sales are growing considerably at these retail outlets and profift margins on prepared foods are higher than selling raw meat to grocery stores. Tyson will have to hire seventeen more s at a salary of $45,000 each to expand into this distribution channel because many of these types of stores are ce store is expected to generate an average of $60,000 in revenue for Tyson. If Tyson' s contribution margin is 25 percent on this product, the sales should increase by $3,060,000 to break even How many new retail accounts must the company acquire to break even on this tactic? What average number of accounts must each new rep acquire?

Explanation / Answer

Number of Retail accounts = ( Increase in sales/ revenue from one store) = (3,060,000 / 60,000) = 51 accounts Each rep will acquire = (51/ 17) = 3 stores

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