Question
The Sea Wharf Restaurant would like to determine the best way to allocate a monthly advertising budget of $1,000 between newspaper advertising and radio advertising.
The Sea Wharf Restaurant would like to determine the best way to allocate a monthly advertising budget of $1,000 between newspaper advertising and radio advertising. Management decided that at least 25% of the budget must be spent on each type of media and that the amount of money spent on local newspaper advertising must be at least twice the amount spent on radio advertising. A marketing consultant developed an index that measures audience exposure per dollar of advertising on a scale from 0 to 100, with higher values implying greater audience exposure. If the value of the index for local newspaper advertising is 50 and the value of the index for spot radio advertising is 80, how should the restaurant allocate its advertising budget to maximize the value of total audience exposure?
(a) Formulate a linear programming model that can be used to determine how the restaurant should allocate its advertising budget in order to maximize the value of total audience exposure. If the constant is "1" it must be entered in the box. If your answer is zero enter "0".
Let N = amount spent on newspaper advertising
R= amount spent on radio advertising
Max
_______N + ________R
s.t.
_______N + ________R = _________Budget
_______N + ________R _________ Newspaper min
_______N + ________R _________ Radio min
_______N + ________R ________ R Allocation min. ratio
.(b) Develop a spreadsheet model and solve the problem using Excel Solver. If required, round your answer to two decimal places.
Newspaper Radio
Dollars Allocated $ __________ $ __________
Total Exposure Index _______________________
-please demonstrate a step-by-step on how you got each answer so I can follow along and work it out as well. Thank you.
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