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Check My Work Problem 11-9 The Chamber of Commerce periodically sponsors public

ID: 3362436 • Letter: C

Question

Check My Work

Problem 11-9

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 online. 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.

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Problem 11-9

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 online. Audience estimates, costs, and maximum media usage limitations are as shown:

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

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.

(a) If the promotional budget is limited to $20,500, how many commercial messages should be run on each medium to maximize total audience contact?
Advertisement Alternatives No of commercial
messages
Television Radio Online What is the allocation of the budget among the three media? Advertisement Alternatives Budget ($) Television $ Radio $ Online $ What is the total audience reached? (b) By how much would audience contact increase if an extra $100 were allocated to the promotional budget? Increase in audience coverage of approximately

Explanation / Answer

Ans:

Maximize z=110000T+17000R+30000O

2500T+300R+500O<=20500

T<=10

R<=23

O<=10

R<=0.4(T+R+O)

-0.4T+0.6R-0.4O<=0

T>=0.1(T+R+O)

0.9T-0.1R-0.1O>=0

a)

total audience reached=1020000

b)Now,this constraint will change to

2500T+300R+500O<=20600

Audiance reached=1024494

Increase in audiance reached=1204494-1020000=4494


Advertisement Alternatives No of commercial
messages
Television 5 Radio 10 Online 10