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Problem 4 PRO Inc. is planning to advertize on TV and on Web. Each TV ad costs s

ID: 432001 • Letter: P

Question

Problem 4 PRO Inc. is planning to advertize on TV and on Web. Each TV ad costs s8500 and reaches 1o,ooo adults and 5000 young potential customers. On the other hand, each Web ad costs s1ooo and reaches 2,ooo adults and 5,ooo young potential customers. PRO has 250,ooo advertizing budget and wants to reach as many people as possible(including both adult and young) using the budget. PRO wants to have resence in both and that is what they want to ave at least 1o ads in each medium. Since PRO is mainly an E-commerce business, they want to have at least two times presence on the Web in comparison to TV.

Explanation / Answer

advertisement on

adults

youngs

costs($)

cost of 10 ads (cost *10)

cost*20

cost*21

tv

10000

5000

8500

85000

170000

178500

web

2000

5000

1000

10000

20000

21000

total budget

250000

amount left after 10 ads each

155000

after 20 ads

60000

after 21 ads

50500

therefore after advertising 21 times on tv PRO has enough money to advertise on web twice from tv (i.e, 42 times on web)

advertisement on

adults

youngs

costs($)

cost of 10 ads (cost *10)

cost*20

cost*21

tv

10000

5000

8500

85000

170000

178500

web

2000

5000

1000

10000

20000

21000

total budget

250000

amount left after 10 ads each

155000

after 20 ads

60000

after 21 ads

50500

therefore after advertising 21 times on tv PRO has enough money to advertise on web twice from tv (i.e, 42 times on web)

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