XYZ Ltd, a manufacturing company, having an extensive marketing network throughout the country, sells its products through four zonal offices, viz. A, B, C and D. The budgeted expenditure for the year is given below:
|
Sales manager’s salary |
1,20,000 |
|
Expenses relating to sales |
80,000 |
|
manager’s office |
|
|
Travelling salesmen’s salaries |
3,20,000 |
|
Travelling expenses |
36,000 |
|
Advertisements |
30,000 |
|
Godown Rent: |
|
|
Zone A – Rs. 15,000 |
|
|
Zone B – Rs. 25,200 |
|
|
Zone C – Rs. 9,800 |
|
|
Zone D – Rs. 18,000 |
68,000 |
|
Insurance on inventories |
20,000 |
|
Commission on sales at 5% on sales |
6,00,000 |
The Following Particulars are Available:
|
Zone |
Sales (Rs. Lakh) |
Number of Salesmen |
Total Mileage Covered |
Allocation of Advertisement |
Avrage Stock Held (Rs. Lakh) |
|
A |
36 |
5 |
6,000 |
30% |
6 |
|
B |
48 |
6 |
14,000 |
30% |
8 |
|
C |
16 |
2 |
4,500 |
20% |
4 |
|
D |
20 |
3 |
5,500 |
20% |
2 |
Based on above details, compute zone-wise selling overheads as a percentage to sales