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You are a manager at a local restaurant and want to do some advertising for your grand opening. After researching your options you find out

You are a manager at a local restaurant and want to do some advertising for your grand opening. After researching your options you find out that you can advertise in either social media, in the newspaper, on the radio or on cable TV. Each format prices their product in blocks of advertising. The costs per block are: Social Media $250, Newspaper $350, Radio $400 and Cable TV $500. You have estimated the total benefit to your revenue of advertising in each format. The total impact on revenue is provided in the table below.

BLOCK

Social Media

Newspaper

Radio

Cable TV

1

1200

1600

1300

1950

2

2200

2800

2200

2950

3

3050

3400

3100

3850

4

3650

3900

3700

4450

5

3975

4450

4200

4975

6

4100

4600

4600

5475

7

4150

4625

4675

5675

8

3900

4475

4700

5850

If your total advertisement budget was $2500 how would you spend it?
What if the budget was increased to $4000?
How would your strategy change if you decided that you did not want to do any advertising on Social Media?
If you could set the budget to whatever you wanted, how much would you set it at and why?
You do not need to spend the entire budget.

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