solution

ABC Sales is expanding its operations and attempting to expand its sales territories. The sales manager has a staff of experienced salespersons who are each paid $500 per week. He is planning to hire some new sales trainees for $300 per week. An experienced salesperson can generate $20,000 worth of sales per week. A sales trainee can generate an average of $12,000 worth of sales per week. The company has budgeted $800 for a training program for the new trainees. The estimated cost of training is $100 per trainee. The sales manager’s payroll budget is $3,600 per week. Furthermore, the company has decided that the total sales force should be limited to 10 or fewer salespersons.

Write the linear programming formulation to help the sales manager to determine the optimum number of experienced salespersons and new trainees in order to maximize sales revenues.