The marketing manager for Mountain Mist soda needs to decide how many TV spots a
ID: 396800 • Letter: T
Question
The marketing manager for Mountain Mist soda needs to decide how many TV spots and magazine ads to run during the next quarter. Each TV spot costs $5000 and is expected to increase sales by 300,000 cans. Each magazine ad costs $2000 and is expected to increase sales by 500,000 cans. A total of $100,000 may be spent on TV and magazine ads; however, Mountain Mist wants to spend no more than $70,000 on TV spots and no more than $50,000 on magazine ads. Mountain Mist earns a profit of $0.05 on each can it sells. Which of the following are the decision variables for this problem, in words? number of TV spots to run during the next quarter Il. number of magazine ads to run during the next quarter IIl. number of cans to be sold during the next quarter IV. amount of profit made from the sale of cans Select one: O a. Only Il O b. Only I and II O c. I, II, and 1ll O d. All of them e. Only IVExplanation / Answer
The decision variables are:
T = the number of TV spots to run in the next quarter.
M = the number of magazine ads to run the next quarter.
Hence the correct option is b. I and II only
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