Article
113 Points
Joined February 2013
Dear Friends
I got classes from CA BLC Sir. and he taught the mistakes about the question.
A manufacturing company, four has zones A, B, C, D and four sales engineers P, Q, R, S respectively for assignment. Since the zones are not equally rich in sales potential, therefore it is estimated that a particular engineer operating in a particular zone will bring the following sales:
Zone A : R 4,20,000
Zone B : R 3,36,000
Zone C : R 2,94,000
Zone D : R 4,62,000
The engineers are having different sales ability. Working under the same conditions, their yearly sales are proportional to 14, 9, 11 and 8 respectively. The criteria of maximum expected total sales is to be met by assigning the best engineer to the richest zone, the next best to the second richest zone and so on.
Find the optimum assignment and the maximum sales.
Case - I :When Sales assumed for all engineers.
Hence a particular engineer should be assumed for sales by all engineers. and accordingly,
the allocation should be as under
P Q R S
A 420x14/42 420x9/42 420x11/42 420x8/42
B 336x14/42 336x9/42 336x11/42 336x8/42
C 294x14/42 294x9/42 294x11/42 336x8/42
D 462x14/42 462x9/42 462x11/42 462x8/42
and in that case the anser would be Rs. 392000.
Case - II :When Sales assumed for a particular engineer P.
Hence a particular engineer assumed to be P. and accordingly, the allocation should be as under
P Q R S
A 420x14/14 420x 9/14 420x11/14 420x8/14
B 336x14/14 336x9/14 336x11/14 336x8/14
C 294x14/14 294x9/14 294x11/14 336x8/14
D 462x14/14 462x9/14 462x11/14 462x8/14
and in this case the answer would be Rs. 1170000.
I am fully conviced with the concept and logic explained by CA BLC Sir. as ICAI assume sales of all engineers however it is specifically mentioned in the question for sales of particular engineer.
If you have any further query, you can contact CA B L Chakravarti Sir at 9810993376 or send your query at gurukulca @ gmail.com