Question

A local bar manager has a marketing budget of $320. He decides to purchase an ad from a local TV station and a local newspaper. TV ads cost of $80 per ad. Newspaper ads cost of $40 per ad. It is estimated that each TV ad would draw in 5 new customers, which equates to an additional profit of $50 per day. It is also estimated that each newspaper ad would draw in 2 new customers, which equates to an additional profit of $20 per day. What is the objective function?

80T + 40N

5T + 2N

T + N

50T + 20N

Answer 1

Data given:

A local bar manager has a marketing budget of $320.

He decides to purchase an ad from a local TV station and a local newspaper.

TV ads cost of $80 per ad and Newspaper ads cost of $40 per ad.

It is estimated that each TV ad would draw in 5 new customers, which equates to an additional profit of $50 per day.

It is estimated that each newspaper ad would draw in 2 new customers, which equates to an additional profit of $20 per day.

Since the objective of any business is to maximize profit, therefore the objective function for the given linear programming problem corresponds to maximum profit.

Let the number of TV ads and number of newspaper ads purchased be "T" and "N" respectively.

Objective function (Profit) = (Profit earned by "T" TV ads) + (Profit earned by "N" newspaper ads)

= 50T + 20N.

Hence, the correct option is (D) .