Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 thrice the amount spent on radlo 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 "O" Let N = amount spent on newspaper advertising Ramount spent on radio advertising Max 50 80 Budget 1000 Newspaper min 250 Radio min 2 250 Allocation min. ratio 3R Allocation min. ratio. (b) Develop a spreadsheet model and solve the problem using Excel Solver. If required, round your answer to two decimal places. Radio Newspaper Dollars Allocated Total Exposure Index
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started