Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Temax realtor company advertises for its business through television, radio, and online. Audience estimates, costs, and maximum media usage limitations are as shown: Constraint Television

  1. Temax realtor company advertises for its business through television, radio, and online. Audience estimates, costs, and maximum media usage limitations are as shown:

Constraint

Television

Radio

Online

Audience per advertisement

100000

18000

40000

Cost per advertisement

1800

300

600

Maximum media usage

12

16

12

To ensure a balanced use of advertising media, radio advertisements must not exceed 40% of the total number of advertisements authorized. In addition, television should account for at least 20% of the total number of advertisements authorized.

  1. If the promotional budget is limited to $17600, 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, and what is the total audience reached? (Dont worry if your answer is in decimals).
  2. By how much would audience contact increase if an extra $100 were allocated to the promotional budget?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

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

Management Accounting Text Problems And Cases

Authors: M. Y. Khan, P K Jain

7th Edition

9352606787, 978-9352606788

More Books

Students also viewed these Accounting questions

Question

What risks come with the reliance on authority for knowledge?

Answered: 1 week ago