Posted: March 2nd, 2017

Budgeting Problem for Quantitative

The advertising agency promoting the new Keem dishwashing soap wants to get the best exposure possible for the product within the $100,000 advertising budget ceiling placed upon it. To do so, the agency needs to decide how much of the buget to spend on each of its two most effective media;(1) television spots during the afternoon hours and (2) large ads in the city’s Sunday newspaper. Each televiosion spot costs ,000; each Sunday newspaper ad costs $1,250. The expected exposure, based on industry ratings, is 35,000 viewers for each commercial and 20,000 readers for each newspaper advertisement. The agency director, Paul, knows from experience that it is important to use both media in order to reach the broadcast spectrum of potemtial Keem customers. He decided that at least 5 but no more 25 television spots should be ordered; and that at least 10 newspaper ads should be contracted. How many times should each of the two media be used to obtain maximum exposure while staying within the budget?