Marginal Analysis: Tables. Susan Mayer is a sales representative for the Desperate Insurance Company, and sells life insurance policies to individuals in the Phoenix area. Mayer's goal is to maximize total monthly commission income, which is figured at 10% of gross sales. In reviewing monthly experience over the past year, Mayer found the following relations between days spent in each city and monthly sales generated.

A. Construct a table showing Mayer's marginal sales per day in each city.
B. If administrative duties limit Mayer to only 10 selling days per month, how should she spend them?
C. Calculate Mayer's maximum monthly commission income.

Question

Marginal Analysis: Tables. Susan Mayer is a sales representative for the Desperate Insurance Company, and sells life insurance policies to individuals in the Phoenix area. Mayer's goal is to maximize total monthly commission income, which is figured at 10% of gross sales. In reviewing monthly experience over the past year, Mayer found the following relations between days spent in each city and monthly sales generated.

A. Construct a table showing Mayer's marginal sales per day in each city.
B. If administrative duties limit Mayer to only 10 selling days per month, how should she spend them?
C. Calculate Mayer's maximum monthly commission income.

Quizplus · Accepted Answer

The Answer of Marginal Analysis: Tables. Susan Mayer is a sales representative for the Desperate Insurance Company, and sells life insurance policies to individuals in the Phoenix area. Mayer's goal is to maximize total monthly commission income, which is figured at 10% of gross sales. In reviewing monthly experience over the past year, Mayer found the following relations between days spent in each city and monthly sales generated.

A. Construct a table showing Mayer's marginal sales per day in each city.
B. If administrative duties limit Mayer to only 10 selling days per month, how should she spend them?
C. Calculate Mayer's maximum monthly commission income.