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.