To answer this question, please SOLVE the advertising slot selection problem as outlined in the PDF document associated with this test. (you will have to use Excel for this). Make sure you select and retain all sensitivity reports after solving. Which of the following statements is true about the solution to the ad slot selection problem?

The optimal solution uses $147,000 out of the available $150,000.

The optimal solution spends a number somewhere between $115,000 to $120,000 for advertising.

The optimal solution fully uses up the available budget of $150,000.

The optimal solution goes over budget.

1. MEDIA SELECTION PROBLEM: The TTK Company has recently developed a new karaoke machine, and has $150,000 to spend on advertising. The product is to be initially test marketed in the Philadelphia area. The money is to be spent on a TV advertising blitz during one weekend (consisting of Saturday and Sunday) in April. There are three options available on both Saturday and Sunday: morning advertising, afternoon advertising and evening news advertising. A mixture of one- minute TV spots is desired. The goal of the campaign is to maximize the total audience reached, while staying within budget. Ad Type Estimated Audience Reached 3000 500 5000 Cost per Ad Morning Ad Afternoon Ad Evening Ad $4000 $800 $6000 TTK wants to take out at least one ad of each type (morning, afternoon, and evening). There are ten daytime (morning and afternoon) spots available on both Saturday and Sunday. There are four evening spots available on Saturday. Further, there are only three Sunday evening ad spots available. TTK wants to have at least 3 ads per day, but spend no more than $70,000 on Saturday and no more than $100,000 on Sunday Define the following decision variables for the problem and answer the questions based upon this information: MSA-number of morning ads on Saturday ASA-number of afternoon ads on Saturday ESAnumber of evening ads on Saturday MSU-number of morning ads on Sunday Asu number of afternoon ads on Sunday ESUnumber of evening ads on Sunday