Cosmos Ltd. manufactures three types of products A, B and C. The sales territory of the company is divided into three areas: North, South and Central. The estimated sales for the year are as follows:

You are required to work out the advertising cost per cent on sales for each product and each territory and prepare a suitable statement for presentation to management.

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North South Central Rs. Rs. Rs. Product A 1,00,000 40,000 Nil Product B 60,000 Nil 1,60,000 Product C Nil 1,40,000 80,000 Budgeted advertising cost is as follows: North South Central Common Rs. 6,400 9,000 7,800 11,600 The Following Particulars are Available: