Question 1 - (LO1-8 Marks)

Case Study on Marginal Analysis: Mr. Mohammad is a regional sales representative for Dental Laboratories, Inc., a company that sells alloys created from gold, silver, platinum, and other precious metals to several dental laboratories to Sharjah, Dubai, and Abu Dhabi. Mohammads goal is to maximize total monthly commission income, which is figured at 8 percent of gross sales. In reviewing monthly experience over the past year, Mr. Mohammad found the following relations between days spent in each city and monthly gross sales generated in following table 1.

Table 1

Days	Sharjah Gross Sales	Dubai Gross Sales	Abu Dhabi Gross Sales
0	10,000	0	6,250
1	25,000	8,750	12,500
2	37,500	16,250	17,500
3	47,500	22,500	21,250
4	55,000	26,250	23,750
5	60.000	28,750	25,000
5	62,500	30,000	25,000
7	62,500	31,250	25,000

1. Construct a table (or spreadsheet) showing Mr. Mohammads marginal sales per day in each city.

2. If administrative duties limit Mohammad to only 10 selling day per month, how should they be spent to maximize commission income?