Question
The Westchester Chamber of Commerce periodically sponsors public service seminars and programs. Currently, promotional plans are under way for this year's program. Advertising alternatives include
The Westchester Chamber of Commerce periodically sponsors public service seminars and programs. Currently, promotional plans are under way for this year's program. Advertising alternatives include television, radio, and online. Audience estimates, costs, and maximum media usage limitations are as shown:
| Constraint | Television | Radio | Online |
| Audience per advertisement | 110,000 | 18,000 | 30,000 |
| Cost per advertisement | $1,500 | $250 | $500 |
| Maximum media usage | 11 | 21 | 13 |
To ensure a balanced use of advertising media, radio advertisements must not exceed 50% of the total number of advertisements authorized. In addition, television should account for at least 10% of the total number of advertisements authorized.
| (a) | If the promotional budget is limited to $23,000, how many commercial messages should be run on each medium to maximize total audience contact? If your answer is zero enter 0. | ||||||||
| |||||||||
| What is the allocation of the budget among the three media? | |||||||||
| |||||||||
| What is the total audience reached? | |||||||||
| (b) | By how much would audience contact increase if an extra $100 were allocated to the promotional budget? Round your answer to the nearest whole number. | ||||||||
| Increase in audience coverage of approximately |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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
Financial Accounting An Integrated Statements Approach
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
2nd Edition
324312113, 978-0324312119
