To ensure a balanced use of advertising media, radio advertisements must not exceed 50% of the total number 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 $15,900, 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? Television Budget (in dollars) $ Radio Budget (in dollars) $ Online Budget (in dollars) $ Total Audience (b) By how much would audience contact increase if an extra $100 were allocated to the promotional budget? (Round your answer to the nearest whole number.)

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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
Radio
Online
Television
Audience per advertisement
Cost per advertisement
Maximum media usage
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 $15,900, how many commercial messages should be run on each medium to maximize total audience contact?
Television
Radio Budget (in dollars)
Online Budget (in dollars)
Total Audience
Radio Online
300,000 54,000 120,000
$2,000
10
$300
20
$600
10
What is the allocation of the budget among the three media, and what is the total audience reached?
Television Budget (in dollars) $
$
$
(b) By how much would audience contact increase if an extra $100 were allocated to the promotional budget? (Round your answer to the nearest whole number.)
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 online. Audience estimates, costs, and maximum media usage limitations are as shown. Constraint Radio Online Television Audience per advertisement Cost per advertisement Maximum media usage 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 $15,900, how many commercial messages should be run on each medium to maximize total audience contact? Television Radio Budget (in dollars) Online Budget (in dollars) Total Audience Radio Online 300,000 54,000 120,000 $2,000 10 $300 20 $600 10 What is the allocation of the budget among the three media, and what is the total audience reached? Television Budget (in dollars) $ $ $ (b) By how much would audience contact increase if an extra $100 were allocated to the promotional budget? (Round your answer to the nearest whole number.)
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