The Fashion Store has $4000 available each month for advertising. Newspaper ads
ID: 3216497 • Letter: T
Question
The Fashion Store has $4000 available each month for advertising. Newspaper ads cost $200 apiece and no more than 10 can be run per month. Radio ads cost $100 each and no more than 20 can run per month. TV ads cost $600 a piece, with a maximum of 6 available each month. Approximately 1000 women will see each newspaper ad, 600 will hear each radio ad, and 16,000 will see each TV ad. How much of each type of advertising should be used if the store wants to maximize exposure? How many newspaper ads should be placed? How many radio ads should be used? How many TV ads should be run? What is the maximum exposure?Explanation / Answer
Newspaper Ad = $200 with 1000 women seeing newspaper
Newspaper ad = $200/1000 = 0.20$ per women
Radio Ad = $100 with 600 women seeing radio
Radio ad = $100/600= 0.16$ per women
TV Ad = $600 with 16000 women seeing TV
TV ad = $600/16000 = 0.0375$ per women
Since the exposure rate is least for TV ad, hence we need to have maximum TV ads as possible
The maximum TV ads can be 6, hence we will have all TV ads
Budget left = $4000 - 6 * $600 = $400
The radio ad is the other option which is cheaper, left hence we can have 4 radio ad and 0 newspaper ad
Newspaper ad = 0
Radio ad = 4
TV ad = 6
maximum exposure = 0 * 1000 + 4 * 600 + 6 * 16000 = 98400 women
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