The Denver advertising agency promoting the new Breem dishwashing detergentwants to get the best exposure possible for the product within the $100,000advertising budget ceiling placed on it. To do so, the agency needs to decide howmuch of the budget to spend on each of its two most effective media: (1) televisionspots during the afternoon hours and (2) large ads in the city's Sunday newspaper.Each television spot costs $3,000; each Sunday newspaper ad costs $1,250. Theexpected exposure, based on industry ratings, is 35,000 viewers for each TVcommercial and 20,000 readers for each newspaper advertisement. The agencydirector, Deborah Kellogg, knows from experience that it is important to use bothmedia in order to reach the broadest spectrum of potential Breem customers. Shedecides that at least 5 but no more than 25 television spots should be ordered, andthat at least 10 newspaper ads should be contracted. How many times should eachof the two media be used to obtain maximum exposure while staying within thebudget? Use the graphical method to solve. Px

Given data is Media Cost ($) Exposure Television 3000 35000 Newspaper 1250 20000 Budget =…

Answered: The Denver advertising agency promoting…

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...

See similar textbooks

Similar questions

West Company’s contribution format income statement for March 2020 is givenbelow:Sales (15,000 units X $30 per unit) $450,000Variable expenses 315,000Contribution margin 135,000Fixed expenses 90,000Net operating income $ 45,000The industry in which West Company operates is quite sensitive to regularmovements in the economy. Thus, profits vary considerably from year to yearaccording to general economic conditions. The company has a large amount ofunused capacity and is studying ways of improving profits.Required:The company CEO has asked you as a Senior Manager to evaluate the belowsituations with recommendations:1- New equipment has come onto the market that would allow WestCompany to automate a portion of its operations. Variable expenseswould be reduced by $9 per unit. However, fixed expenses wouldincrease to a total of $225,000 each month. How Net Income wouldappear if the new equipment were purchased. As a Senior Manager,what factor/s would be paramount in your mind deciding…
The president of a small chain of women’s clothing stores was concerned about a four-year trend of decreasing profits. The stores have been characterized as being rather conservative over the years with respect to their product line, store decor, and advertising. They have consistently avoided trendy clothes, for example. Their market is now becoming extremely competitive because several aggressive fashion stores are expanding and are aiming at the young, fashion-conscious buyer. As a result of this competition and the disappointing profit trend, the president is considering making the product line appear less conservative and more oriented toward the young buyer. Before making such a risky change, the president feels it prudent to conduct some marketing research to learn the exact status of his chain. What should be the research purpose? Compose a set of research questions that would be helpful.
Kenyi is a recent college grad. His friends always ask for his advice first when buying new products, particularly technology products. When Kenyi recommends a product, the news spreads rapidly by word of mouth. Kenyi is most likely
3. Suppose Coca Cola launches a new Tab energy drink. They have spent years and approximately 500,000 on research and development and test marketing. They plan to offer the drink only in urban areas representing 80% of the US Market which is estimated at 50 million cans. When they launch, they plan to offer a $0.25 coupon. Historically, only 20% of US consumers actually redeem coupons. Coca Cola plans to use an aggressive advertising and marketing campaign that represent fixed costs of $2,000,000. Suggested Retail Price Cost of Materials Cost of Labor Coupon (with 20% redemption rate) S.25 Retail Margin Wholesaler Margin $1.00 bottle s0.20/ bottle s.07/ bottle 20% off retail price 10% of the retailer's cost 1. What price does the retailer pay? 2. What price does the wholesaler pay? 3. What is Coke's variable cost of goods sold per unit? 4. What is Coke's contribution per unit? 5. How many units does Coke have to sell to break even? 6. At wholesale prices, what is Coke's breakeven…
Which one of the following responses is not true about an annual fundraising campaign? Group of answer choices An annual campaign is primarily used in the private sector. An annual campaign is conducted each year. An annual campaign is used to support operating expenses. An annual campaign can be used for short-term purposes.
Develop a spreadsheet for the question. The vice president of finance has looked at your ooriginal scoring model and feels that tax considerations should be included in teh model with a weight of 15. In addition, the VP has scored the methods on tax considerations as follows: method A recieved a score of 3, method B recieved a score of 2, and Method C recieved a score of 1. How would this additional information affect your recommendation?
Beeson Co. is experiencing a decrease in sales and operating income for the fiscal year ending December 31st. Julia Faure, controller of Beeson Co., has suggested that all orders received before the end of the fiscal year be shipped by midnight, December 31st even if shipping department must work overtime. Since Beeson Co. ships all merchandise FOB shipping point, it would record all such shipments as sales for the year ending December 31st, thereby offsetting some of the decreases in sales and operating income.Discuss whether Julia Faure is behaving in a professional manner and what are the implications of her actions?
The Westchester Chamber of Commerce periodically sponsors public service seminars and programs. Currently, promotional plans are under way for this year's program. Advertising alternatives include television, radio, and online. Audience estimates, costs, and maximum media usage limitations are as shown. Constraint Television Radio Online Audience per advertisement 200,000 36,000 80,000 Cost per advertisement $2,000 $300 $600 Maximum media usage 10 20 10 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. (a) If the promotional budget is limited to $25,100, how many commercial messages should be run on each medium to maximize total audience contact? Television ___ Radio____ Online____ What is the allocation of the budget among the three media, and what is the total audience reached?…
Some citizens complained to city council members that there should be equal protection under the law against the occurrence of crimes. The citizens argued that this equal protection should be interpreted as indicating that high-crime areas should have more police protection than low-crime areas. Therefore, police patrols and other methods for preventing crime (such as street lighting or cleaning up abandoned areas and buildings) should be used proportionately to crime occurrence. The city has been broken down into 20 geographic areas, each containing 5,000 residences. The police recognize that not all crimes and offenses are reported: people do not want to become involved, consider the offenses too small to report, are too embarrassed to make a police report, or do not take the time, among other reasons. Every month, because of this, the police are contacting by phone a random sample of 1,000 of the 5,000 residences for data on crime. (Respondents are guaranteed anonymity.) The 1,000…

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Business in Action

Operations Management

ISBN:

9780135198100

Author:

BOVEE

Publisher:

PEARSON CO

Purchasing and Supply Chain Management

Operations Management

ISBN:

9781285869681

Author:

Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:

Cengage Learning

Production and Operations Analysis, Seventh Editi…

Operations Management

ISBN:

9781478623069

Author:

Steven Nahmias, Tava Lennon Olsen

Publisher:

Waveland Press, Inc.

SEE MORE TEXTBOOKS