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