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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 has 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 if $ is spent on radio advertising and $ is spent on directmail advertising? Enter amounts in dollars, i e $ thousands should be written as $
$
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. If the constant is it must be entered in the box. For subtractive or negative numbers use a minus sign even if there is a sign before the blank Example: If your answer is zero enter
Max
R
M
RM
R
M
st
R
M
Budget
R M
c Determine the optimal amount to spend on radio and directmail advertising. How much in sales will be generated? Enter amounts in dollars, i e $ thousands should be written as $ If your answer is zero enter
Amount spent on radio advertising $
Amount spent on directmail advertising $
Total Sales $
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