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 newspaper. Audience estimates, costs, and maximum media usage limitations are as shown: Constraint Audience per advertisement Cost per advertisement Maximum media usage Television Radio Newspaper 120000 20000 $1500 $210 12 25 37000 $430 10
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 newspaper. Audience estimates, costs, and maximum media usage limitations are as shown: Constraint Audience per advertisement Cost per advertisement Maximum media usage Television Radio Newspaper 120000 20000 $1500 $210 12 25 37000 $430 10
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text: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 newspaper. Audience
estimates, costs, and maximum media usage limitations are as shown:
Constraint
Audience per advertisement
Cost per advertisement
Maximum media usage
To ensure
balanced use of advertising media, radio advertisements must not exceed 45% 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 $26080, 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? If required, round your answer
to nearest integer.
T =
Television Radio Newspaper
120000 20000
$1500 $210
12 25
Let T = number of television spot advertisements
R = number of radio advertisements
N = number of newspaper advertisements
R =
N =
37000
$430
10
Budget $
What is the total audience reached?
b. By how much would audience contact increase if an extra $100 were allocated to the promotional budget?
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