TopAd, a new advertising agency with 10 employees, has received a contract to promote a new product. The agency can advertise by radio and television. The following table gives the number of people reached by each type of advertisement and the cost and labor requirements. Exposure (in millions of persons) Cost (in thousands of dollars) Assigned employees Data/min advertisement Radio 8 1 Television 8 24 22 The contract prohibits TopAd from using more than 6 minutes of radio advertisement. Addi- tionally, radio and television advertisements need to reach at least 45 million people. TopAd has a budget goal of $100,000 for the project. How many minutes of radio and television advertise- ment should TopAd use?

TopAd, a new advertising agency with 10 employees, has received a contract to promote a new product. The agency can advertise by radio and television. The following table gives the number of people reached by each type of advertisement and the cost and labor requirements. Exposure (in millions of persons) Cost (in thousands of dollars) Assigned employees Data/min advertisement Radio 8 1 Television 8 24 22 The contract prohibits TopAd from using more than 6 minutes of radio advertisement. Addi- tionally, radio and television advertisements need to reach at least 45 million people. TopAd has a budget goal of $100,000 for the project. How many minutes of radio and television advertise- ment should TopAd use?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 29E: Olympus, Inc., manufactures three models of mattresses: the Sleepeze, the Plushette, and the Ultima....

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