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 television, radio, and online. Audience estimates, costs, and maximum media usage limitations are as shown:

Constraint	Television	Radio	Online
Audience per advertisement	100,000	18,000	40,000
Cost per advertisement	$2000	$300	$600
Maximum media usage	10	20	10

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 $18,200, how many commercial messages should be run on each medium to maximize total audience contact? If your answer is zero enter “0”.

Advertisement Alternatives	No of commercial messages
Television
Radio
Online

What is the allocation of the budget among the three media?

Advertisement Alternatives	Budget ($)
Television	$
Radio	$
Online	$

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

Answer 1

Solution:

Given that.....