The ABC Company wants to increase its sales for the next quarter by promoting its product nationwide. The company has budgeted up to P1,000,000 per month for advertising. The money is to be allocated among four promotional media: TV spots, newspaper ads, and two types of radio advertisements. The company’s goal is to reach the largest possible high potential audience through various media. The following table presents the number of potential customers reached by using an advertisement in each of the four media. It also provides the cost per advertisement placed and the maximum number of ads purchased per month. ABC’s policy requires at least five radio spots to be placed each week. To ensure broad- scoped promotional campaign, management also insists that no more than P400,000 be spent on newspaper advertising every month. MEDIUM AUDIENCE REACHED PER AD COST PER AD MAXIMUM ADS PER month TV Spot (1 Minute) 9,000 P 40,000 15 Daily Newspaper (full-page ad) 8,500 P 42,500 20 RADIO Spot (30 seconds, prime time) 3,000 P 15,000 12 RADIO Spot (1 minute, afternoon) 3,200 P 17,000 10 Formulate the complete LP model.
The ABC Company wants to increase its sales for the next quarter by promoting its product nationwide. The company has budgeted up to P1,000,000 per month for advertising. The money is to be allocated among four promotional media: TV spots, newspaper ads, and two types of radio advertisements. The company’s goal is to reach the largest possible high potential audience through various media. The following table presents the number of potential customers reached by using an advertisement in each of the four media. It also provides the cost per advertisement placed and the maximum number of ads purchased per month.
ABC’s policy requires at least five radio spots to be placed each week. To ensure broad- scoped promotional campaign, management also insists that no more than P400,000 be spent on newspaper advertising every month.
|
MEDIUM |
AUDIENCE REACHED PER AD |
COST PER AD |
MAXIMUM ADS PER month |
|
TV Spot (1 Minute) |
9,000 |
P 40,000 |
15 |
|
Daily Newspaper (full-page ad) |
8,500 |
P 42,500 |
20 |
|
RADIO Spot (30 seconds, prime time) |
3,000 |
P 15,000 |
12 |
|
RADIO Spot (1 minute, afternoon) |
3,200 |
P 17,000 |
10 |
Formulate the complete LP model.
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