The college director of global activities was hopeful that the print ads in the school newspaper and 30-second spots on the campus radio station would spur some interest in the array of study tour and study abroad options he had secured. The communications director for the college had other ideas; she favored a social media campaign consisting of tweets and Facebook postings.

The communications director's market research revealed the following:

Medium	Exposure	Cost
Newspaper	5,000	$500
Radio	3,000	$250
Twitter	700	$25
Facebook	200	$15

• The advertising budget is $3500, but there is no requirement that all the money be spent.
• The newspaper has only four issues before the end of the semester.
• The radio has two dozen 30 second slots available.
• There is space for only three Facebook postings before the end of the semester.
• It would take five (140 character) Twitter tweets to convey a single message about tours and semesters abroad. One tweet of the five would cost $25. They don't want to exceed 2800 characters before the end of the semester.

Which of these statements about the sensitivity report for the constraints is best?

		Final	Shadow	Constraint	Allowable	Allowable
Cell	Name	Value	Price	R.H. Side	Increase	Decrease
$G$5	Budget	3500	12	3500	2560	3440

The advertising campaign needs another $2,560 to reach the maximum number of customers.

The marginal value is 12 for every additional unit of budget.

It is possible to reach enough customers by spending only $60.

Only $940 of the advertising budget is being spent on this campaign.

 

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