Management is planning to promote a new service in two mediabuys: flyers and online advertisements. A media budget of $1,500 isavailable for this promotional campaign. Based on past experiencein promoting its other services, the following estimate of therelationship between sales and the amount spent on promotion inthese two media is
S = -8F^2 - 22A^2 - 4FA + 12F + 32A
where
S = total sales in thousands of dollars
F = dollars spent on flyers
A = dollars spent on online advertising
Formulate an optimization problem that can be solved to maximizesales subject to the media budget of spending no more than $1,500on total advertising. Determine the optimal amount to spend onflyers and online advertising.
How much should be allocated to flyers and onlineadvertising?
(in 000s, two decimal places - include leading zero, no dollarsign).
a. Flyers:
b. Online Ads:
What is the optimal sales value generated?
(in 000s, two decimal places, no dollar sign).
c. Sales:
How much of the budget is unspent, based on youroptimization?
(in 000s, two decimal places - include leading zero, no dollarsign).
d. Unspent budget:
