Carco has a $1,500,000 advertising budget. To increase its automobile sales, the firm is considering advertising in

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Carco has a $1,500,000 advertising budget. To increase its automobile sales, the firm is considering advertising in newspapers and on television. The more Carco uses a particular medium, the less effective each additional ad is. The file P04_96.xlsx lists the number of new customers reached by each ad. Each newspaper ad costs $1000, and each television ad costs $10,000.

At most, 30 newspaper ads and 15 television ads can be placed. How can Carco maximize the number of new customers created by advertising?

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Practical Management Science, Revised

ISBN: 9781118373439

3rd Edition

Authors: Wayne L Winston, S. Christian Albright

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