VRV Co. Ltd, a manufacturing company, having extensive marketing net work across the country, sells its products through four zones, viz. East, West, South, and North. The budgeted expenditure for the year is given below:

Sales manager’s salary

60,000

Expenses relating to sales manager’s office

40,000

Travelling salesmen’s salaries

1,60,000

Travelling expenses

18,000

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15,000

Godown Rent:

East Zone:

7,500

West Zone:

12,600

South Zone:

4,900

North Zone:

9,000

34,000

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