The accounting firm of Coopers & Andersen is conducting a benchmarking survey to assess the satisfaction level of its clients versus clients served by competing

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The accounting firm of Coopers & Andersen is conducting a benchmarking survey to assess the satisfaction level of its clients versus clients served by competing accounting firms. The clients are divided into four groups:

Group 1: Large clients of Coopers & Andersen

Group 2: Small clients of Coopers & Andersen

Group 3: Large clients of other accounting firms

Group 4: Small clients of other accounting firms

A total of 4,000 companies are being surveyed either by telephone or via a two-way web-cam interview. The costs associated with surveying the different types of companies are summarized below:



The accounting firm of Coopers & Andersen is conducting a


Coopers & Andersen wants the survey to carry out the survey in the least costly way that meets the following conditions:
• At least 10% but not more than 50% of the total companies surveyed should come from each group.
• At least 50% of the companies surveyed should be clients of Coopers & Andersen.
• At least 25% of the surveys should be done via web cam.
• At least 50% of the large clients of Coopers & Anderson who are surveyed should be done via web cam.
• A maximum of 40% of those surveyed may be small companies.
• A maximum of 25% of the small companies surveyed should be done via web cam.
a. Formulate an LP model for this problem.
b. Create a spreadsheet model for this problem and solve it using Solver.
c. What is the optimalsolution?

Survey Costs Group Telephone $18 $14 $25 $20 Webcam $40 $35 $60 $45 4

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