[[@ Release x U NNTo VR =T /R NATeIVE: T TS G o ETe (TS @ Francoi= X (@ ChatGP x Home|! X @ PeopleS X PR * Course' X =+ & (e webassign.net/web/Student/Assignment-Responses/last?dep=35755919#question5120703_2 Vi LT LT ) Finish update : oy Text Blaze Dashbo... Text Blaze Diction... 24 Meet - vea-xbsm-... A live boosts - Goog... Cash Card - Overv... #cco-cs-escalatio... [ Empathy Library!... 3 3 All Bookmarks A company is trying to determine how to allocate its $137,000 advertising budget for a new product. The company is considering newspaper ads and television commercials as its primary means for advertising. The following table summarizes the costs of advertising in these different media and the number of new customers reached by increasing amounts of advertising. # of New Customers Media & # of Ads Reached Cost per Ad Newspaper: 1-10 900 $1,000 Newspaper: 11-20 700 $900 Newspaper: 21-30 400 $800 Television: 1-5 10,000 $12,000 Television: 6-10 7,500 $10,000 Television: 11-15 5,000 $8,000 For instance, each of the first 10 ads the company places in newspapers will cost $1,000 and is expected to reach 900 new customers. Each of the next 10 newspaper ads will cost $900 and is expected to reach 700 new customers. Note that the number of new customers reached by increasing amounts of advertising decreases as the advertising saturates the market. Assume the company will purchase no more than 30 newspaper ads and no more than 15 television ads. (Let Ny be the number of newspaper ads purchased at $1,000 each. Let N, be the number of newspaper ads purchased at $900 each. Let Ny be the number of newspaper ads purchased at $800 each. Let T be the number of television ads purchased at $12,000 each. Let T, be the number of television ads purchased at $10,000 each. Let T3 be the number of television ads purchased at $8,000 each.) (a) Formulate an LP model for this problem to maximize the number of new customers reached by advertising. MA: 900N, + 700N, + 400N, + 10,0007, + 7,500T,, + 5,0007, Subject to: 1,000N; + 900N, + 800N, + 12,0007, + 10,0007, + 8,000T; > All Bookmarks maximum number of newspaper ads purchased at $900 N2 5 10 maximum number of newspaper ads purchased at $800 N3 10 maximum number of television ads purchased at $12,000 T15 5 maximum number of television ads purchased at $10,000 T25 5 maximum number of television ads purchased at $8,000 T3 5 5 N1 , N2 , N31 1, 21 73 2 0 (b) Implement your model in a spreadsheet and solve it. What is the optimal solution? (N1, N2, N3, T1, T21 73) = 10,10,10,5,5,0 * ) (c) Suppose the number of new customers reached by 11-20 newspaper ads is 400 and the number of new customers reached by 21-30 newspaper ads is 700. Make these changes in your spreadsheet and reoptimize the problem. What is the new optimal solution? (Round your answers to the nearest whole number.) (N1, N21 N31 1, T21 73) = 10,0,20,5,0,0 What (if anything) is wrong with this solution and why? The solution does not make sense since the variable /2 is used before the variable N1. The solution does not make sense since the variable /3 is used before the variable N2- The solution does not make sense since the variable 73 is used before the variable T2. The solution does not make sense since the variable 72 is used before the variable 71. The solution is reasonable given the context of the problem. Need Help? Read It