The advertising budget is limited to $10,000 a month. Each minute of advertising on radio costs $15 and each minute on TV costs $300. A newspaper ad costs $50. Show &

Sell likes to advertise on radio at least twice as much as on TV. In the meantime, the use of at least 5 newspaper ads and no more than 400 minutes of radio advertising a month is recommended. Past experience shows that advertising on TV is 50 times more effective than on radio and 10 times more effective than in newspapers.

(a) Determine the optimum allocation of the budget to the three media.

(b) Are the limits set on radio and newspaper advertising justifiable economically?

(c) If the monthly budget is increased by 50%, would this result in a proportionate increase in the overall effectiveness of advertising?

The Burroughs Garment Company manufactures men's shirts and women's blouses for Walmark Discount Stores. Walmark will accept all the production supplied by Burroughs.

The production process includes cutting, sewing, and packaging. Burroughs employs 25 workers in the cutting department, 35 in the sewing department, and 5 in the packaging department. The factory works one 8-hour shift, 5 days a week. The following table gives the time requirements and prices per unit for the two garments:

Minutes per unit Garment Shirts Blouses Cutting 20 60 Sewing 70 60 Packaging 12 4

Unit price ($)

8.00 12.00