Problem 4-01 (Algorithmic) The Westchester Chamber of Commerce periodically sponsors public service seminars and programs....

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Accounting

Problem 4-01 (Algorithmic)

The Westchester Chamber of Commerce periodically sponsors public service seminars and programs. Currently, promotional plans are under way for this years program. Advertising alternatives include television, radio, and newspaper. Audience estimates, costs, and maximum media usage limitations are as shown:

Constraint Television Radio Newspaper
Audience per advertisement 100000 18000 40000
Cost per advertisement $1400 $300 $600
Maximum media usage 10 20 10

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.

  1. If the promotional budget is limited to $16,400, how many commercial messages should be run on each medium to maximize total audience contact? What is the allocation of the budget among the three media? If required, round your answers to the nearest dollar.
    Let T = number of television spot advertisements
    R = number of radio advertisements
    N = number of newspaper advertisements
    Budget ($)
    T = fill in the blank 1 fill in the blank 2
    R = fill in the blank 3 fill in the blank 4
    N = fill in the blank 5 fill in the blank 6
    Total Budget = $ fill in the blank 7
    What is the total audience reached? Round your answer to the nearest whole number.
  2. 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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