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Is wider distribution in Nigeria worth it?
The prompt
An illustrative biscuit brand in Nigeria is stocked in 40,000 outlets, which each sell 30 packs a week. The brand receives NGN 150 per pack and earns a 40 percent gross margin. A distributor can add 20,000 smaller outlets that would each sell 20 packs a week, but serving them adds NGN 30 of cost per pack. What revenue does the brand make today, and what weekly contribution would the new outlets add?
Your interviewer will share data as you ask for it. Ask clarifying questions, state a hypothesis, then lay out your structure out loud before you calculate.
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