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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