1.5 Your car wash company is advertising on local radio, on local television, and via direct mail....
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1.5 Your car wash company is advertising on local radio, on local television, and via direct mail. You believe that a radio campaign raises your gross profit by $100, a television campaign raises it by $200, and a direct mail campaign raises it by $50. The cost of a radio campaign is $50, the cost of a television campaign is $75, and the cost of a direct mail campaign is $50.
a. If you cannot change your total advertising budget, should you reallocate your spending? If yes, explain how. If no, explain why not.
b. If you can change your advertising budget, should you change your spending on advertising? If yes, explain the changes you would make. If no, explain why not.
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