A car dealership needs to determine how to allocate its $20,000 advertising budget. They have estimated the expected profit from each dollar (X) spent in four different advertising media as follows: Expected profits from newspaper is 100X0.7; expected profit from radio is 125X0.65;

0.6 0.5expected profit from TV is 180X ; and expected profit from direct mail is 250X . If the

company wants to spend at least $500 on each medium, how should it allocate its advertising budget in order to maximize profit?

I have everything in my spreadsheet correct except for my expected profit equation in cells (F3:F6).

F3 X V fx A B C D E F G 1 2 $ Spent Minimum Profit Coefficents Expected Profit Newspaper 0 0 0 0 0 500 100 0.7 4 Radio 500 125 0.65 5 TV 500 180 0.6 6 Direct Mail 500 250 0.5 7 Total Spent 0 8 Total Available 20000 9 10 11 12 13 14