The Chamber of Commerce periodically sponsors public service seminars and programs. Currently, promotional plans are...
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Accounting
The Chamber of Commerce periodically sponsors public service seminars and programs. Currently, promotional plans are under way for this year's program. Advertising alternatives include television, radio, and online. Audience estimates, costs, and maximum media usage limitations are as shown:
Constraint
Television
Radio
Online
Audience per advertisement
140,000
18,000
30,000
Cost per advertisement
$1,500
$200
$550
Maximum media usage
15
19
12
To ensure a balanced use of advertising media, radio advertisements must not exceed 45% of the total number of advertisements authorized. In addition, television should account for at least 15% of the total number of advertisements authorized.
(a)
If the promotional budget is limited to $24,100, how many commercial messages should be run on each medium to maximize total audience contact?
Advertisement Alternatives
No of commercial messages
Television
Radio
Online
What is the allocation of the budget among the three media?
Advertisement Alternatives
Budget ($)
Television
$
Radio
$
Online
$
What is the total audience reached?
(b)
By how much would audience contact increase if an extra $100 were allocated to the promotional budget?
Increase in audience coverage of approximately
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