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A department store plans to schedule its annual advertising. The total budget is set at $300,000. The store can purchase local radio spots at $100

A department store plans to schedule its annual advertising. The total budget is set at $300,000. The store can purchase local radio spots at $100 per spot, local television spots at $500 per spot and local newspaper advertising at $200 per ad. The payoff from each advertising medium is a function of its audience size and audience characteristics. The generally accepted objective criterion for advertising is audience points, reflected in the following table:

Medium Points
Radio 20 per spot
Television 80 per spot
Newspaper 100 per ad

The president of the firm has established the following goals for the campaign:

1. The total budget should not exceed $300,000.

2. Meet the contract with the local television station that requires that the firm spend at least $30,000.

3. The corporate advertising policy prohibits annual newspaper ad expenditures in excess of $30,000.

4. The audience points for the advertising campaign to be as close as possible to 1,000,000.

The president has established unit weights on the goals of 5, 4, 3 and 2 for the goals 1 through 4, respectively. Solve the goal programming problem using Excel Solver.

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