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An ice cream company must decide how much money to allocate for advertising both their new flavor of ice cream and a traditional flavor over

An ice cream company must decide how much money to allocate for advertising both their new flavor of ice cream and a traditional flavor over the coming year. The advertising budget is $10,000,000. Because the company wants to push its new flavor, at least one-half of the advertising budget is to be devoted to the new flavor advertising. However, at least $2,000,000 is to be spent on its traditional flavor. The company estimates that each dollar spent on the traditional flavor will translate into 100 pints sold, whereas, because of the harder sell needed for new products, each dollar spent on the new flavor will translate into 50 pints sold.

To attract new customers, the company has lowered its profit margin on the new flavor to 2 cents per pint as compared to 4 cents per pint for the traditional flavor. How should the ice cream company allocate its advertising budget if it wants to maximize its profits while selling at least 750 million pints?

A) $5,000,000 on the new flavor and $5,000,000 on the traditional flavor

B) $10,000,000 on the new flavor and $0 on the traditional flavor

C) $2,500,000 on the new flavor and $7,500,000 on the traditional flavor

D) $7,500,000 on the new flavor and $2,500,000 on the traditional flavor

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