The Winner Association promotes gambling junkets from Santa

The Winner Association promotes gambling junkets from Santa Claus, GA to a cruise boat casino in Savannah. The association has budgeted up to $8,000 per week for local advertising. The money is to be allocated among TV spots, newspaper ads, and two types of radio advertisements. The following table presents the number of potential gamblers reached by making use of an advertisement in each of the four media. It also provides the cost per advertisement placed and maximum number of ads that can be purchased per week.

Medium

Audience Reached per ad

Cost per ad ($)

Maximum ads per week

TV spot (1 minute)

5000

800

12

Newspaper (full-page ad)

5500

925

5

Radio spot (30 seconds, prime time)

2400

290

25

Radio spot (1 minute, afternoon)

2800

380

20

Winner’s contractual arrangements require that at least five radio spots be placed each week. To ensure a broad-scoped promotional campaign, management also insists that no more than $1,800 be spent on radio advertising every week. What is the maximized number of audience The Winner Association can reach? Please round your answer to two decimal places.

Solution

1) Total budget for local advertising is $ 8000 /-

2) Atleast 5 radio spot per weak and budget should be no more than $ 1800 /-

3) Considering condition radio spot let 3 radio spot (1 minuta, afternoon) and 2 radio spot (30 second,prime time) = $ 3*380 + $ 2*290 = $ 1720 . Audience the winner association reach through radio spot are = 3*2800+ 2*2400 = 13,200 .

4) Budget left $ 8000 - $ 1720 = $ 6280;

5) (News Paper ) x * 925 + (Tv spot) y * 800 <= $ 6280 and it should maximise the audience.

4*925 + 3*800 = 6100;

No.of audience 5500 * x + 5000 * y = 5500 * 4 + 5000 * 3 = 37,000

6 ) Total audience will equal to = 37000 + 13200 = 50,200 .

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