Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

GreenLawns provides a lawn fertilizing and weed control service. The company is adding a special aeration treatment as a low - cost extra service option,

GreenLawns provides a lawn fertilizing and weed control service. The company is adding a special aeration treatment as a low-cost extra service option, which it hopes will help attract new customers. Management is planning to promote this new service in two media: radio and direct-mail advertising. A media budget of $3,500 is available for this promotional campaign. Based on past experience in promoting its other services, GreenLawns obtained the following estimate of the relationship between sales and the amount spent on promotion in these two media.
S =2R210M28RM +18R +34M
where
S = total sales in thousands of dollars
R = thousands of dollars spent on radio advertising
M = thousands of dollars spent on direct-mail advertising
GreenLawns would like to develop a promotional strategy that will lead to maximum sales subject to the restriction provided by the media budget.
(a)
What is the value of sales (in dollars) if $3,000 is spent on radio advertising and $500 is spent on direct-mail advertising?
S = $
(b)
Formulate an optimization problem that can be solved to maximize sales subject to the media budget of spending no more than $3,500 on total advertising.
Max
s.t.
<=3.50
R, M >=0
(c)
Determine the optimal amount to spend (in dollars) on radio and direct-mail advertising. (Round your answers to the nearest dollar.)
radio
R
= $
direct-mail
M
= $
How much money (in dollars) will be generated in sales? (Round your answer to the nearest dollar.)
Total sales
S
= $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Fundamentals of Database Systems

Authors: Ramez Elmasri, Shamkant Navathe

6th edition

136086209, 978-0136086208

Students also viewed these General Management questions

Question

Where is the position?

Answered: 1 week ago