Answered step by step
Verified Expert Solution
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 lowcost extra service option, which it hopes will help attract new customers. Management is planning to promote this new service in two media: radio and directmail advertising. A media budget of $ 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 RMRM R M
where
S total sales in thousands of dollars
R thousands of dollars spent on radio advertising
M thousands of dollars spent on directmail 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 $ is spent on radio advertising and $ is spent on directmail advertising?
S $
b
Formulate an optimization problem that can be solved to maximize sales subject to the media budget of spending no more than $ on total advertising.
Max
st
R M
c
Determine the optimal amount to spend in dollars on radio and directmail advertising. Round your answers to the nearest dollar.
radio
R
$
directmail
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started