CMA Final · Strategic Cost Management · Assignment
A firm assigns three salesmen P, Q and R to three territories 1, 2 and 3, one each. Expected monthly profit in ₹ lakh is: P: 12, 10, 8; Q: 9, 14, 11; R: 13, 7, 15 (territories 1, 2, 3). What is the maximum total profit?
The maximum total profit is ₹41 lakh. It comes from assigning P to territory 1, Q to territory 2 and R to territory 3, giving 12 + 14 + 15. Every other assignment yields 35 lakh or less.
- A₹35 lakh
- B₹34 lakh
- C₹41 lakhCorrect
- D₹30 lakh
Explanation
For a maximisation problem, check all six assignments. The totals are 41, 30, 34, 34, 24 and 35. The best is P-1, Q-2, R-3, which gives 12 + 14 + 15 = 41. Picking the minimum-cost style answer or a near-best assignment such as 35 would be wrong.
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