Tyson Foods is the largest U.S. beef and chicken supplier, processing more than 100,000 head of...

 

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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. Their primary distribution channels are supermarket meat departments. However, the company is now expanding distribution 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 profit margins on prepared foods are higher than selling raw meat to grocery stores. Tyson will have to hire 20 more sales representatives at a salary of $50,000 each to expand into this distribution channel because many of these types of stores are independently owned. Each convenience store is expected to generate an average of $62.500 in revenue for Tyson. If Tyson's contribution margin is 40 percent on this product, the sales should increase by $2,500,000 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? The number of new retail accounts is (Round to the nearest whole number.) 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. Their primary distribution channels are supermarket meat departments. However, the company is now expanding distribution 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 profit margins on prepared foods are higher than selling raw meat to grocery stores. Tyson will have to hire 20 more sales representatives at a salary of $50,000 each to expand into this distribution channel because many of these types of stores are independently owned. Each convenience store is expected to generate an average of $62.500 in revenue for Tyson. If Tyson's contribution margin is 40 percent on this product, the sales should increase by $2,500,000 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? The number of new retail accounts is (Round to the nearest whole number.)

Answer rating: 100% (QA)

The data of Tyson food is given below Average revenue 75000 Contribution margin 30 Fixed co... View the full answer