A candidate for state office is developing an advertising plan for her primary election campaign. She wants her message to reach at least 240,000 potential voters. In addition, she wants to reach at least 90,000 potential wealthy voters (who have a yearly income of at least $100,000 and so are more likely to make financial contributions), and she wants to reach at least 60,000 potential young voters who are age 30 or younger (since her positions appeal to them). A radio ad costs $2,000 and is estimated to reach 10,000 potential voters 4,000 of whom will be wealthy voters with an income of at least $100,000 and 9,500 of whom will be young voters who are age 30 or younger. A TV ad costs $6,000 and is expected to reach 40,000 potential voters 10,000 of whom will be wealthy voters and 5,000 of whom will be young voters. As a member of her campaign staff, you have formulated the following linear programming model to identify the least cost combination of radio and TV ads that will meet these requirements. The model is presented below in tableau form. Radio Ads 2000 TV Ads 6000 min s.t 10000 4000 9500 40000 10000 5000 240000 All Voters 90000 Wealthy Voters 60000 Young Voters Radio Ads, TV Ads >= 0 E H B E F G 1 Microsoft Excel 16.0 Answer Report 2 Worksheet: [APEC 3002 inclass Exercise Reports.xlsx]Sheet1 3 Report Created: 3/22/2019 12:35:42 PM 4 Result: Solver found a solution. All constraints and optimality conditions are satisfied. 5 Solver Engine 6 Engine: Simplex LP 7 Solution Time: 0.047 Seconds. 18 Iterations: 4 Subproblems: 0 9 Solver Options 10 Max Time Unlimited, Iterations Unlimited, Precision 0.000001, Use Automatic Scaling 11 Max Subproblems Unlimited, Max Integer Sols Unlimited, Integer Tolerance 1%, Assume NonNegative 12 13 14 Objective Cell (Min) 15 Cell Name Original Value Final Value 16 $E$11 Cost 46000 46000 17 18 19 Variable Cells 20 Name Original Value Final Value Integer 21 $C$8 Activity Levels Radio Ads 20 20 Contin $D$8 Activity Levels TV Ads 1 1 Contin 23 24 25 Constraints Name Cell Value Formula Status Slack 27 $E$4 All Voters Quantity 240000 $E$4>=$G$4 Binding 28 $E$5 Wealthy Voters Quantity 90000 $E$5>=$G$5 Binding 29 $E$6 Young Voters Quantity 195000 $E$6>=$G$6 Not Binding 135000 Cell 22 26 Cell 0 0 SA D E F B E F G H 1 Microsoft Excel 16.0 Sensitivity Report 2 Worksheet: [APEC 3002 inclass Exercise Reports.xlsx]Sheet1 3 Report Created: 3/22/2019 12:35:42 PM 44 5 6 Variable Cells (7 Final Reduced Objective Allowable Allowable 78 Cell Name Value Cost Coefficient Increase Decrease 9 $C$8 Activity Levels Radio Ads 20 0 2000 400 500 10 $D$8 Activity Levels TV Ads 0 6000 2000 1000 11 12 Constraints 13 Final Shadow Constraint Allowable Allowable 14 Cell Name Value Price R.H. Side Increase Decrease 15 $E$4 All Voters Quantity 240000 0.066666667 240000 108000 15000 16 $E$5 Wealthy Voters Quantity 90000 0.333333333 90000 6000 24545.45455 17 $E$6 Young Voters Quantity 195000 60000 135000 1E+30 1 0 Give a numeric answer to questions 1 through 7. 1. How much must the campaign spend for advertising when they are using the least cost combination of media? 2. How many radio ads will the campaign buy when they are using the least cost advertising strategy? 3. How many TV ads will the campaign buy when they are using the least cost advertising strategy? 4. What is the marginal cost of reaching a wealthy voter? 5. How much would the campaign's advertising cost increase if the minimum number of young voters to be reached were increased to 120,000? 6. What would the least cost advertising budget be if the minimum number of wealthy voters to be reached were raised by 3,000 - i.e., from 90,000 to 93,000? 7. What would be the added cost to the campaign of increasing the total number of potential voters to be reached to 340,000? |||||| Answer YES or NO to questions 8 through 10|| 8. Will the least cost combination of advertising media change if the price for a radio ad falls to $1,550? 9. Will the least cost combination of advertising media change if the price for a TV ad rises to $7,500