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You are required to construct a selling-overhead budget from the following details:
Establishment expenses of the sales department
30,000.
Other expenses of the sales department
12,000.
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9,000.
Salaries to counter-salesmen
Commission to counter-salesmen at 2% on their sales.
commission to travelling salesmen at 5% on their sales and out-of-pocket expenses at 3% on their sales.
The following are the likely sales range for a year.
Sales as counter
Sales by travelling salesmen
Rs. 3,00,000
Rs. 30,000
Rs. 4,00,000
Rs. 40,000
Rs. 5,00,000
Rs. 50,000
Determine the best sales mix. Rank the services offered in order of their profitability and what would be the total contribution margin generated by Ortiz, assuming the weight-loss support group has the maximum number of patient billings?
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