business through television, radio, and online. Audience estimates, costs, and maximum media usage limitations are as shown:   Constraint Television Radio Online Audience per advertisement 100000 18000 40000 Cost per advertisement 1800 300 600 Maximum media usage 12 18 12 To ensure a balanced use of advertising media, radio advertisements must not exceed

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Temax realtor company advertises for its business through television, radio,

and online. Audience estimates, costs, and maximum media usage limitations are as

shown:

 

Constraint Television Radio Online

Audience per

advertisement 100000 18000 40000

Cost per

advertisement 1800 300 600

Maximum

media usage 12 18 12

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.

1. If the promotional budget is limited to $17600, how many commercial messages

should be run on each medium to maximize total audience contact? What is the

allocation of the budget among the three media, and what is the total audience

reached?

2. By how much would audience contact increase if an extra $100 were allocated to

the promotional budget

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