How exactly to determine the allocation

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Reference no: EM13154225

Marginal Analysis:. Doug Ross is a regional sales representative for Specialty Books, Inc., and sells textbooks to universities in Midwestern states. Ross' goal is to maximize total monthly commission income, which is figured at 10% of gross sales. In reviewing monthly experience over the past year, Ross found the following relations between days spent in each state and monthly sales generated:

Days Kansas Gross Sales Oklahoma Gross Sales Nebraska Gross Sales Kansas Marginal Sales Oklahoma Marginal Sales Nebraska Marginal Sales
0 2000 500 1000 0 0 0
1 4000 1500 3500 2000 1000 2500
2 5600 2300 5500 1600 800 2000
3 6800 2900 7000 1200 600 1500
4 7900 3300 8100 1100 400 1100
5 8500 3500 8900 600 200 800
6 8800 3600 9400 300 100 500
7 8900 3600 9600 100 0 200

If administrative duties limit Ross to only 15 selling days per month, how should he spend them?

I know that the answer will be somehow related to the amount of marginal sales per day, but dont know how exactly to determine the allocation.

Reference no: EM13154225

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