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likoan [24]
3 years ago
15

Tyson Foods is the largest U.S. beef and chicken​ supplier, processing more than​ 100,000 head of cattle and​ 40-plus million ch

ickens weekly. 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 eighteen more sales representatives at a salary of ​$45 comma 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​ $50,000 in revenue for Tyson. If​ Tyson's contribution margin is 30 percent on this​ product, what increase in sales will it need to break even on the increase in fixed costs to hire the new sales​ reps?
Business
1 answer:
Deffense [45]3 years ago
5 0

Answer:

$810,000

Explanation:

The computation is shown below:

The increase in fixed cost is

= Salary of each sales representative × number of sales representatives hired

=  $45,000 × 18

= $810,000

Now the increase in sales needed for break even is

= Increase in fixed cost ÷ Contribution margin ratio

= $810,000 ÷ 30%

= $2,700,000

As we know that break even sales is computed by dividing the fixed cost by the contribution margin ratio and we applied the same

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Beale Manufacturing Company has a beta of 1.8, and Foley Industries has a beta of 0.80. The required return on an index fund tha
navik [9.2K]

Answer:

3.5%

Explanation:

We will apply asset pricing model to calculate cost of equity (required rate of return). The capital asset pricing model is stated as below:

Cost of equity = Risk-free rate + Beta x Market risk premium

Putting all the number together, we have:                          

Cost of equity (Beale) = 5.5% + 1.8 x (9% - 5.5%) = 11.8%

Cost of equity (Foley) = 5.5% + 0.8 x (9% - 5.5%) = 8.3%

Cost of equity (Beale) - Cost of equity (Foley) = 11.8% - 8.3% = 3.5%

<em />

<em>Note: You can also do quick calculation as below:</em>

<em>Cost of equity (Beale) - Cost of equity (Foley) = (Beta of Beale - Bete of Foley) x Market risk premium = (1.8 - 0.8) x (9% - 5.5%) = 3.5%</em>

6 0
2 years ago
The _______ transport of auxin establishes the orientation of growth; the _______ redistribution of auxin causes a growth respon
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This is the complete sentence: the polar transport of auxin establishes the orientation of growth, the lateral redistribution of auxin causes a growth response to an enviromental stimulus  that is called morphogenesis.<span />
5 0
3 years ago
Explain the ways in which Fiscal Policy and Monetary Policy interact by using Keynesian IS and LM curves. Discuss the impact of
statuscvo [17]

Answer and Explanation:

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The banks have to lower their bank rate and decrease CRR. When prices rise, consumption decreases and investment increases. When the interest rate is made high consumption and investment both become stable. Hence, there is full employment. Government has a fiscal policy to increase taxes and borrowings and increase the export and income rises and price becomes stable.

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3 years ago
Raul recently started a real estate company with a unique way of presenting a menu of​ services, each with a fixed​ price, rathe
Zigmanuir [339]

Answer:

small business

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6 0
3 years ago
Joanie recognizes that the board and CEO are particularly worried that individuals will post negative information about the comp
Vilka [71]

<u>Answer</u>:

<u>Should create a non disclosure agreement policy</u>

<u>Explanation:</u>

This is a legally binding agreement that mandates parties to a contract in this case between an employer with an employee, in which the employee agrees not to disclose publicly or to any one negative information about the company that is deemed confidential (secret or private), and that may affect the company negatively.

Thus, to reduce the worries of the board and CEO, Joanie should create a non disclosure agreement signed by employees.

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2 years ago
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