The Sea Wharf Restaurant would like to determine the best way to allocate a monthly advertising budget of $1,000 between newspaper advertising and radio advertising. Management decided that at least 25% of the budget must be spent on each type of media and that the amount of money spent on local newspaper advertising must be at least thrice the amount spent on radio advertising. A marketing consultant developed an index that measures audience exposure per dollar of advertising on a scale from 0 to 100, with higher values implying greater audience exposure. If the value of the index for local newspaper advertising is 50 and the value of the index for spot radio advertising is 80, how should the restaurant allocate its advertising budget to maximize the value of total audience exposure?

ANSWER:
Given that,
a)
first we build the total exposure formula in the excel cell as seen in the figure above.
Next, we set up the excel solver where we provide the objective function and choose to maximize it
then, we provide the constraints as shown in the solver
choosing nonnegative option as the variables are positive and the simplex method to solve, we get the following solution
Get Answers For Free
Most questions answered within 1 hours.