13.2 The Dakota Valley Booster Club in North Sioux City, SD, is a nonprofit organization that fundraises to support extracurricular activities at the Dakota Valley School District. The activities it supports include fine arts, athletics, and academicrelated teams or groups. Each month, the club holds a tailgate or meal (depending on the season)

and charges $5 a person. Food for the meals

is sponsored by local businesses, so all of the revenue received is “surplus” (profit) to be used for student activities. Getting the word out about the meals is important both because the amount of support the booster club can provide is related to its surplus from fund-raisers and because the businesses that agree to sponsor the food are doing so for marketing and visibility purposes. As a small nonprofit organization, advertising options and funding are limited.
Suppose that you are determining the amount of advertising to do for a small, nonprofit booster club like the one at the Dakota Valley School District. You can elect to pay to boost visibility for the information placed on your Facebook group page; this means people in the area beyond those who subscribe to your posts will be able to see your event information.
Another option is to place ads in the local newspaper. The local paper comes out once per week, meaning that you cannot do more than four advertisements before each meal. You can also print flyers and hire a high school student to distribute them at school functions. The cost of each unit of advertising and the number of customers at each level of advertising are given in the tables.

a. Using the above information, calculate the marginal benefit in dollars from each unit of advertising for each type of advertising.

b. Using the marginal benefit you found in part a and the formulas from your textbook, find the marginal benefit per dollar spent on advertising for each kind of advertising at each level. This will tell you how many dollars of benefit you receive from each dollar spent.

c. Suppose that the booster club you are helping currently places an ad in the paper for each of the four weeks leading up to the meal, hands out 400 flyers, and does one boost on Facebook before the event. How much of each type of advertising would you recommend the club do?

d. If this booster club is limited to $110 of advertising for each meal, how much do you recommend it spend in each area? Why do you recommend this allocation?

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A B 12345678901227 Facebook Advertising 2 Cost per Boost Units of Advertising 0 1 15 Newspaper Ads $10 D Expected Customers Marginal Benefit in Dollars MBIP 0 20 2 40 3 55 4 70 5 80 6 7 8 288 85 90 90 16 Cost per Week $70 17 18 19 20 21 Units of Advertising 0 Expected Customers Marginal Benefit in Dollars MBIP 0 1 45 2 80 22 3 4 105 120 23 24 25 Flyers 34 35 Cost per 100 (Includes Distribution) Units of Advertising 0 $30 Expected Customers Marginal Benefit in Dollars. MB P 26 27 28 29 30 0 30 31 55 32 3 75 33 4 90 1 2 597 6 100 105 105