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A large drug company must determine how many sales representatives to assign to each of...

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Accounting

A large drug company must determine how many sales representatives to assign to each of four sales

districts. The cost of having n (n>0) representatives in a district is 88,000+80,000n dollars per year, and

you only pay 88,000 fixed cost if there is at least one sales representative at that district.

If a sales rep is based in a given district, the time it takes to complete call on a doctor is that given in the

following table, where times are in hours:

Actual Sales Call District

Rep's Base District 1 2 3 4

1 1 4 5 7

2 4 1 3 5

3 5 3 1 2

4 7 5 2 1

Each sales rep can work up to 160 hours per month. Each month a certain number of calls, given in the

following table, must be made in each district.

Number of calls

District 1 50

District 2 80

District 3 100

District 4 60

A fractional number of representatives in a district is not permissible.

Determine how many representatives should be assigned to each district.

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