Question: John Smith is a regional sales representative for Snappy Tools, Inc., and sells hand tools to auto mechanics in New England states. Smith's goal is

 John Smith is a regional sales representative for Snappy Tools, Inc.,

John Smith is a regional sales representative for Snappy Tools, Inc., and sells hand tools to auto mechanics in New England states. Smith's goal is to maximize total monthly commission income, which is gured at 10% of gross sales. In reviewing experience over the past year, Smith found the following relations between days spent in each state and weekly sales generated. 3 New Vermont Hampshire Maine Days Sales Sales Sales 0 $ 3,000 $ 3,000 $1,900 1 10,000 7,000 5,200 2 15,000 10,600 7,400 3 19,000 13,800 8,600 4 22,000 16,600 9,200 5 24,000 19,000 9,600 6 25,000 21,000 9,800 1. Construct a table showing Smith's marginal sales per day in each state. 2. If Smith is limited to 7 selling days per week, how should they be spent? 3. Calculate Smith's maximum weekly commission income

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!