The answer for Part B is the one I need most. Thanks! Problem 8-9 The Chamber of

Question

The answer for Part B is the one I need most. Thanks!

Problem 8-9

The Chamber of Commerce periodically sponsors public service seminars and programs. Currently, promotional plans are under way for this year's program. Advertising alternatives include television, radio, and newspaper. Audience estimates, costs, and maximum media usage limitations are as shown:

To ensure a balanced use of advertising media, radio advertisements must not exceed 40% of the total number of advertisements authorized. In addition, television should account for at least 10% of the total number of advertisements authorized.

Constraint Television Radio Newspaper Audience per advertisement 110,000   17,000   30,000   Cost per advertisement $2,500   $300   $500   Maximum media usage 10   23   10  

Explanation / Answer

a)

10

Advertisement Alternatives Budget ($)
Television 12500
Radio 3000
Newspaper 5000

b) Increase in audience coverage of approx 4494 if the budget is increased by $100.

When the budget is 20500 the audience coverage is approx 1020000

When the budget is 20600 the audience covergae is approx 1024494

Advertisement Alternatives No of commercial messages Television 5 Radio 10 Newspaper

10

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