1. Sarah Lee Foods is a large producer of fresh and frozen baked goods. Primary distribution channels are supermarket bakeries and frozen foods sections. Sarah Lee is looking to expand distribution to convenience stores and limited grocery stores like Dollar General. Each new account is projected to generate $100,000 in annual revenue for Sarah Lee. The company is planning to add 10 new sales representatives to begin to develop this channel. Each sales representatives salary and benefits will be $80,000 per year. If the companys contribution margin on sales is 40%, how many new accounts must be added for Sarah Lee to break even on this initiative?