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Marketing managers have various media alternatives in which to advertise and must determine which to use, the number of insertions in each, and the timing of insertions to maximize advertising effectiveness within a limited budget. Suppose that three media options are available to Kernan Services Corporation: radio, TV, and magazine. The accompanying table provides some information about costs, exposure values, and bounds on the permissible number of ads in each medium desired by the firm. The exposure value is a measure of the number of people exposed to the advertisement and is derived from market research studies. The company would like to achieve a total exposure value of at least 80,000. Complete parts a and b below. Click the icon to view the media alternatives data. a. How many of each type of ad should be placed to minimize the cost of achieving the minimum required total exposure? Formulate and solve a linear optimization model using the auxiliary variable cells method and write a short memo to the marketing manager explaining the solution and sensitivity information using the auxiliary variable Sensitivity Report The cost is $, which can be obtained by placing radio ads, TV ads, and magazine ads. The shadow prices indicate that an increase in the maximum number of magazine ads will the cost by up to a maximum increase of magazine ads. The shadow prices indicate that an increase in the minimum number of TV ads will the cost by $ up to a maximum increase of TV ads. (Round to the nearest whole number.) b. How many of each type of ad should be placed to minimize the cost of achieving the minimum required total exposure? Solve the model without the auxiliary variables and explain the relationship between the reduced costs and the shadow prices found in part a. The cost is $which can be obtained by placing radio ads, TV ads, and magazine ads. The reduced cost for the magazine ads must be reduced by more than $ to make the reduced cost for the magazine ads found in part a positive. The reduced cost for the TV ads must be increased by more than $ to make the reduced cost for the TV ads found in part a positive. The reduced costs and the shadow prices found in part a for magazine ads are Vand the reduced costs and the shadow prices found in part a for TV ads are (Round to the nearest whole number.) Media alternatives data Medium Cost Ad Exposure Value Ad Min Units Max Units Radio $400 1.800 0 15 TV $1,900 4.200 8 99 Magazine $210 2,500 6 11 Print Done Marketing managers have various media alternatives in which to advertise and must determine which to use, the number of insertions in each, and the timing of insertions to maximize advertising effectiveness within a limited budget. Suppose that three media options are available to Kernan Services Corporation: radio, TV, and magazine. The accompanying table provides some information about costs, exposure values, and bounds on the permissible number of ads in each medium desired by the firm. The exposure value is a measure of the number of people exposed to the advertisement and is derived from market research studies. The company would like to achieve a total exposure value of at least 80,000. Complete parts a and b below. Click the icon to view the media alternatives data. a. How many of each type of ad should be placed to minimize the cost of achieving the minimum required total exposure? Formulate and solve a linear optimization model using the auxiliary variable cells method and write a short memo to the marketing manager explaining the solution and sensitivity information using the auxiliary variable Sensitivity Report The cost is $, which can be obtained by placing radio ads, TV ads, and magazine ads. The shadow prices indicate that an increase in the maximum number of magazine ads will the cost by up to a maximum increase of magazine ads. The shadow prices indicate that an increase in the minimum number of TV ads will the cost by $ up to a maximum increase of TV ads. (Round to the nearest whole number.) b. How many of each type of ad should be placed to minimize the cost of achieving the minimum required total exposure? Solve the model without the auxiliary variables and explain the relationship between the reduced costs and the shadow prices found in part a. The cost is $which can be obtained by placing radio ads, TV ads, and magazine ads. The reduced cost for the magazine ads must be reduced by more than $ to make the reduced cost for the magazine ads found in part a positive. The reduced cost for the TV ads must be increased by more than $ to make the reduced cost for the TV ads found in part a positive. The reduced costs and the shadow prices found in part a for magazine ads are Vand the reduced costs and the shadow prices found in part a for TV ads are (Round to the nearest whole number.) Media alternatives data Medium Cost Ad Exposure Value Ad Min Units Max Units Radio $400 1.800 0 15 TV $1,900 4.200 8 99 Magazine $210 2,500 6 11 Print Done