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Math 10 Tyson Foods is the largest U.S. Beef and chicken supplier, processing more that 100,000 head of cattle and 40-plus million chickens weekly. Primary
Math 10 Tyson Foods is the largest U.S. Beef and chicken supplier, processing more that 100,000 head of cattle and 40-plus million chickens weekly. Primary distribution channels are supermarket meat departments. However, the company is now expanding distributions into convenience stores. There are almost 150,000 gas stations and conveniences 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 profit margins on prepared foods are higher than selling raw meat to grocery stores. Tyson will have to hire 10 more sales representatives at a salary of $90,000 each to example into this distribution channel because many of these types of stores are independently owned. Each convenience store is expected to generate an average of $100,000 in revenues for Tyson. Referring to Appendix 3: Marketing by the Numbers (and the notes below), answer the following questions. Question 1) If Tyson's contribution margin is 30% on the product, what increase in sales will it need to break even on the increase in fixed costs to hire the new sales reps? Question 2) How many new retail accounts must the company acquire to break even on this tactic? Question 3) What average number accounts must each new rep acquire
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