The Sea Wharf Restaurant would like to determine the best way to allocate a monthly advertising budget of $2,000 between newspaper advertising and radioadvertising. 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 newspaperadvertising must be at least one and a half times the amount spent on radio advertising. A marketing consultant developed an index that measures audienceexposure 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 newspaperadvertising 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 totalaudience exposure?(a) Formulate a linear programming model that can be used to determine how the restaurant should allocate its advertising budget in order to maximize the valueof total audience exposure. If the constant is "1" it must be entered in the box. If your answer is zero enter "0".Let NRMaxamount spent on newspaper advertisingamount spent on radio advertising501100.5NNN+++++Dollars Allocated 1333.380 RTotal Exposure Index 120000101 R0R.2IV222000666.67500500RBudgetNewspaper min(b) Develop a spreadsheet model and solve the problem using Excel Solver. If required, round your answer to two decimal places.NewspaperRadioRadio min.Allocation min. ratio.

Objective Functions and Constraints: Based on the given details, the objective…

Answered: each type of media and that the amount…

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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Mr. Johnnie B. Good has a furniture business which he operates as a sole proprietor. The business has been doing well for several years and now he wants to finance the expansion of his business by way of a loan and he is thinking of approaching BCN Bank accordingly. He is also planning to buy a great deal of raw material on credit from Miller’s Hardware in support of the business expansion. Mr. Good in looking at the potential risks to his personal assets and in an effort to safeguard himself from losing his personal assets if the business failed and was not able to repay the loan or pay for the material he got on credit, filed the relevant documents with the companies office and incorporated a private company, Good Furniture Ltd, with him as the sole shareholder and director and then went ahead and obtained a loan in the company’s name from the bank and bought the raw material on credit on behalf of the company. The bank in providing the loan ensured that Mr. Good signed a personal…
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Target is considering opening mini-Target stores in airports across the United States. Target knows that 25% of the items in its store account for 70% of the store's sales and expects that this Pareto relationship will hold for the mini-Target stores. The mini-Targets will each carry 50 items, but it's unknown at this point which 50 items will be stocked. The annual sales of a mini-Target is forecasted to be $500,000. Assume A items are top 20% of items sold, B items are the next 30% and C items are the bottom 50% of items sold. Turnover is expected to be for A items = 50, B items = 40 and C items = 10. 1. The top 20% of items in the min-Target store will account for what percent of sales? - 42.9% - 56.2% - 68.7% - 63.6% 2. What is the annual item sales expected to be for the 25th best selling product in the mini-Target store? - $113 - $4,510 - $437,500 - $76,350
Please try to solve it within 1 hour
The manager of a fish market pays 80 cents each The manager of a fish market pays 80 cents each for cod and sells them for $1.50 each. Fish left over at the end of the day are discarded. The daily demand can be approximated by a normal distribution having a mean of 300 and a standard deviation of 50. To maximize his expected profit, how many cod should the manager buy before the market opens each day? The manager of a fish market pays 80 cents each
HITACHI LTD. an air conditioner manufacturer, produces 'x' sets per week at a total cost of x2+780x+25000. The firm is a monopolist and the demand function for its product is x = (15000 - ), where the price is 'p' per set. 4 (i) Determine the number of AC sets to be produced per week at which the firm will earn maximum net revenue; and (ii) Decide the monopoly price.
The supplier's unit cost for the product is $10. The product is sold by the supplier to the retailer for $15 per unit. The retailer then sells the product to end consumers for $20 per unit. There is no value for unsold items. Demand for the product in the consumer market follows a Normal distribution with a mean of 3000 and a standard deviation of 1000. The retailer must determine the quantity to order before actual demand is known. a) What is the optimal order amount for the retailer? b) The supplier offers to buy any unsold product at $5. What is the buyer's optimal order quantity? c) What would be the best buyback offer for the supplier? find the optimal buyback price that the supplier should offer to the retailer so that one does not earn less than the wholesale price contract in part a. (d) What would be the optimal order quantity if both companies were owned by the same person?
Choose the correct letter of answer If your objective is to maximize the profit for products x and y which earns a contribution margin of P2 and P3 respectively, your objective function must be: *a. P = 3x + 2yb. P = 2x + 3yc. P = x + y d. none of the above
Target is considering opening mini-Target stores in airports across the United States. Target knows that 25% of the items in its store account for 70% of the store's sales and expects that this Pareto relationship will hold for the mini-Target stores. The mini-Targets will each carry 50 items, but it's unknown at this point which 50 items will be stocked. The annual sales of a mini-Target is forecasted to be $500,000. Assume A items are top 20% of items sold, B items are the next 30% and C items are the bottom 50% of items sold. Turnover is expected to be for A items = 50, B items = 40 and C items = 10 1. The top 20% of items in the min-Target store will account for what percent of sales? A. 63.6% B. 68.7% C. 56.2% D. 42.9% 2. What is the annual item sales expected to be for the worst selling product in the mini-Target store? A. $145 B. $1,453 C. $13,905 D. $32,781
Rina consumes orange and avocado. In year 2020, orange cost $4 each, avocado cost $5 each. In year 2021, orange cost $6 , avocado cost $8. She buys 5 oranges and 4 avocados. a. Compute a consumer price index for oranges dan avocados for each year. Assume that year 2020 is the base year in which the consumer basket is fixed. How does your index change from 2020 to year 2021? b. Compute Rina’s nominal spending on oranges and avocados in each year. How does it change from 2020 to 2021?
An auto dealer believes that demand for 2024 model cars will be normally distributed with a mean of 200 and a standard deviation of 30. His cost of receiving a car is $25,000, and he sells the car for $40,000. Half of all cars not sold at full price can be sold for $30,000. He is considering ordering 200, 220, 240, 269, 280, or 300 cars. Which order quantity has the highest expected (average) profit? Which has the lowest standard deviation in profit?

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