Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

5. 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

5. 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

150,000

17,000

35,000

Cost per advertisement

$1,500

$250

$500

Maximum media usage

12

18

11

To ensure a balanced use of advertising media, radio advertisements must not exceed 45% 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 $24,000, how many commercial messages should be run on each medium to maximize total audience contact?

Advertisement Alternatives

No of commercial messages

Television

image text in transcribed

Radio

image text in transcribed

Online

image text in transcribed

What is the allocation of the budget among the three media?

Advertisement Alternatives

Budget ($)

Television

$image text in transcribed

Radio

$image text in transcribed

Online

$image text in transcribed

What is the total audience reached?

image text in transcribed

(b)

By how much would audience contact increase if an extra $100 were allocated to the promotional budget?

Increase in audience coverage of approximately image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Systems Direct Auditing Practice Case IBM Book Workbook And 5.25 Disk

Authors: Dieter Weiss, Gaylord N. Smith

1st Edition

0538809051, 978-0538809054

More Books

Students also viewed these Accounting questions