Question

A farmer sells four of his farm products, Maize, potatoes, carrots and tomatoes in each of the two

towns in Rwanda ( Huye and Muhanga) to three classes of customers: Consumers, wholesalers
and retailers in bags as given below:
HUYE
Product
Maize Potatoes Carrots Tomatoes
Consumers 4 6 7 4
Retailers 3 2 1 6
Wholesalers 4 3 5 3
MUHANGA
Product
Maize Potatoes Carrots Tomatoes
Consumers 4 5 3 6
Retailers 7 8 4 4
Wholesalers 2 4 0 1
In order to sell his products in the towns, a farmer pays a commission to salesman, town managers
and Division Manager as shown below.
Salesman
Town
manager
Division
manager
Huye 6% 5% 2%
Muhanga 4% 3% 3%
The selling price per bag is given as follows
Products
Selling price per bag in
Rwf
Maize 200
Potatoes 1,000
Carrots 500
Tomatoes 700
Required: ---------------- 2 Marks per Each
a) Find the total sales in units by product and customer type.
b) Determine the difference between the two towns in sales (in Units) by product and
customer type.
c) Calculate the total sales in Rwf by each town.
d) Find the sales in Rwf by customer type for each town.
e) Compute the amount of commission to be paid by type of commission and type of
customer.

Answer 1

a) To find the total sales in units by product and customer type, we need to multiply the number of bags sold by the selling price per bag. The table below shows the calculations:

Town Product Consumers Retailers Wholesalers

Huye Maize 800 600 800

Potatoes 6,000 2,000 3,000

Carrots 3,500 500 2,500

Tomatoes 2,800 4,200 2,100

Muhanga Maize 800 1,000 0

Potatoes 5,000 8,000 4,000

Carrots 1,500 2,000 0

Tomatoes 4,200 2,800 700

b) To determine the difference between the two towns in sales (in Units) by product and customer type, we subtract the sales in Muhanga from the sales in Huye. The table below shows the calculations:

Town Product Consumers Retailers Wholesalers

Maize 0 -400 800

Huye Potatoes 0 -1,000 0

Carrots 2,000 0 2,500

Tomatoes -1,400 1,000 1,400

Total 600 -400 4,700

Product Consumers Retailers Wholesalers

Maize 0 400 0

Muhanga Potatoes 0 6,000 1,000

Carrots -2,000 -500 0

Tomatoes 1,400 -1,400 -700

Total -600 4,500 300

c) To calculate the total sales in Rwf by each town, we need to add up the sales in units for each town and product and then multiply by the selling price per bag. The table below shows the calculations:

Town Total sales in Rwf

Huye 24,400

Muhanga 23,700

d) To find the sales in Rwf by customer type for each town, we need to multiply the number of bags sold by the selling price per bag and then add up the sales for each customer type. The table below shows the calculations:

Town Customer Maize Potatoes Carrots Tomatoes

Huye Consumers 800 6,000 3,500 2,800

Retailers 600 2

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Answer 2

a) The table below shows the total sales in units by product and customer type:

| Town/Customer | Maize | Potatoes | Carrots | Tomatoes |
|---------------|-------|----------|---------|----------|
| Huye Consumers | 4 | 6 | 7 | 4 |
| Huye Retailers | 3 | 2 | 1 | 6 |
| Huye Wholesalers | 4 | 3 | 5 | 3 |
| Muhanga Consumers | 4 | 5 | 3 | 6 |
| Muhanga Retailers | 7 | 8 | 4 | 4 |
| Muhanga Wholesalers | 2 | 4 | 0 | 1 |

b) The table below shows the difference between the two towns in sales (in Units) by product and customer type:

| Customer | Maize | Potatoes | Carrots | Tomatoes |
|----------|-------|----------|---------|----------|
| Consumers | 0 | 1 | 4 | -2 |
| Retailers | 4 | 6 | 3 | 2 |
| Wholesalers | 2 | -1 | 5 | 2 |

c) The total sales in Rwf by each town are as follows:
- Huye: 4(200) + 6(1000) + 7(500) + 4(700) + 3(200) + 2(1000) + 1(500) + 6(700) + 4(200) + 3(1000) + 5(500) + 3(700) = 30,600
- Muhanga: 4(200) + 5(1000) + 3(500) + 6(700) + 7(200) + 8(1000) + 4(500) + 4(700) + 2(200) + 4(1000) + 0(500) + 1(700) = 46,800

d) The sales in Rwf by customer type for each town are as follows:

| Town/Customer | Consumers | Retailers | Wholesalers |
|---------------|-----------|-----------|-------------|