Problem 4-01 (Algorithmic) The Westchester Chamber of Commerce periodically sponsors public service seminars and programs. Currently, promotional plans are under way for this year's program. Advertising alternatives include television, radio, and online. Audience estimates, costs, and maximum media usage limitations are as shown: Constraint Audience per advertisement Cost per advertisement Maximum media usage Television Radio Online 100000 $2000 18000 20000 $300 $600 10 20 10 To ensure a balanced use of advertising media, radio advertisements must not exceed 50% of the total number of advertisements authorized. In addition, television should account for at least 10% of the total number of advertisements authorized. a. If the promotional budget is limited to $29,300, how many commercial messages should be run on each medium to maximize total audience contact? What is the allocation of the budget among the three media? If required, round your answers to the nearest dollar. Let 7-number of television spot advertisements R = number of radio advertisements O = number of online advertisements Budget ($) T = 10 R- 0 = Total Budget = $ What is the maximum total audience that would be reached? Round your answer to the nearest whole number. b. By how much would audience contact increase if an extra $100 were allocated to the promotional budget? Round your answer to the nearest whole number. Problem 4-11 (Algorithmic) Edwards Manufacturing Company purchases two component parts from three different suppliers. The suppliers have limited capacity, and no one supplier can meet all the company's needs. In addition, the suppliers charge different prices for the components. Component price data (in price per unit) are as follows: Supplier Component 1 23 1 $11 2 $9 $12 $10 $13 $9 Each supplier has a limited capacity in terms of the total number of components it can supply. However, as long as Edwards provides sufficient advance orders, each supplier can devote its capacity to component 1, component 2, or any combination of the two components, if the total number of units ordered is within its capacity. Supplier capacities are as follows: Supplier Capacity 1 2 3 500 900 700 If the Edwards production plan for the next period includes 900 units of component 1 and 700 units of component 2, what purchases do you recommend? That is, how many units of each component should be ordered from each supplier? Round your answers to the nearest whole number. If your answer is zero, enter "0". Supplier 1 2 3 Component 1 Component 2 What is the total purchase cost for the components? Round your answer to the nearest dollar. $ Problem 4-03 (Algorithmic) The employee credit union at State University is planning the allocation of funds for the coming year. The credit union makes four types of loans to its members. In addition, the credit union invests in risk-free securities to stabilize income. The various revenueproducing investments together with annual rates of return are as follows: Type of Loan/Investment Annual Rate of Return (%) Automobile loans Furniture loans Other secured loans Signature loans Risk-free securities 8 12 14 13 9 The credit union will have $2.1 million available for investment during the coming year. State laws and credit union policies impose the following restrictions on the composition of the loans and investments. Risk-free securities may not exceed 30% of the total funds available for investment. Signature loans may not exceed 10% of the funds invested in all loans (automobile, furniture, other secured, and signature loans). Furniture loans plus other secured loans may not exceed the automobile loans. Other secured loans plus signature loans may not exceed the funds invested in risk-free securities. How should the $2.1 million be allocated to each of the loan/investment alternatives to maximize total annual return? Round your answers to the nearest dollar. Automobile Loans Furniture Loans $ $ Other Secured Loans S Signature Loans $ Risk Free Loans $ What is the projected total annual return? Round your answer to the nearest dollar. $