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6. The marketing manager of Hops Brewery must determine how many television spots and magazine ads to purchase within an advertising budget of $100,000. Each TV spot is expected to increase sales by 35,000 cases (each case contains 24 cans), whereas each magazine ad will cause an increase of 100,000 cases in sales. Hop's gross profit on sales is $2.00 per can. Each television spot costs $2,000. Each magazine ad requires an expenditure of $5,000. To have a balanced marketing program, the advertising budget must involve no more than $70,000 in magazine ads and no more than $50,000 in television spots. Determine how many TV spots and how many magazine ads should be purchased in order to maximize the net increase in beer profits.

6. The marketing manager of Hops Brewery must determine how many television spots and magazine ads to purchase within an advertising budget of $100,000. Each TV spot is expected to increase sales by 35,000 cases (each case contains 24 cans), whereas each magazine ad will cause an increase of 100,000 cases in sales. Hop's gross profit on sales is $2.00 per can. Each television spot costs $2,000. Each magazine ad requires an expenditure of $5,000. To have a balanced marketing program, the advertising budget must involve no more than $70,000 in magazine ads and no more than $50,000 in television spots. Determine how many TV spots and how many magazine ads should be purchased in order to maximize the net increase in beer profits.

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Data Types Sort Fiter Data Tools Forecast Outline G M. R. T. 6. The marketing manager of Hops Brewery must determine how many television spots and magazine ads to purchase within an advertising budget of $100,000. Each TV spot is expected to increase sales by 35,000 cases (each case contains 24 cans), whereas each magazine ad will cause an increase of 100,000 cases in sales. Hop's gross profit on sales is $2.00 per can. Each television spot costs $2,000. Each magazine ad requires an expenditure of $5,000. To have a balanced marketing program, the advertising budget must involve no more than $70,000 in magazine ads and no more than $50,000 in television spots. Determine how many TV spots and how many magazine ads should be purchased in order to maximize the net increase in beer profits.
Transcribed Image Text:Data Types Sort Fiter Data Tools Forecast Outline G M. R. T. 6. The marketing manager of Hops Brewery must determine how many television spots and magazine ads to purchase within an advertising budget of $100,000. Each TV spot is expected to increase sales by 35,000 cases (each case contains 24 cans), whereas each magazine ad will cause an increase of 100,000 cases in sales. Hop's gross profit on sales is $2.00 per can. Each television spot costs $2,000. Each magazine ad requires an expenditure of $5,000. To have a balanced marketing program, the advertising budget must involve no more than $70,000 in magazine ads and no more than $50,000 in television spots. Determine how many TV spots and how many magazine ads should be purchased in order to maximize the net increase in beer profits.
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