Consider the following scenario and select the best answer: A company is trying to determine how to allocate its $145,000 advertising budget for a new product. The company is considering newspaper ads and television commercials as its primary means for advertising. The following table summarizes the costs of advertising in these different media and the number of new customers reached by increasing amounts of advertising. Media & No. of Ads No. of New Customers Cost per Ad Reached Newspaper: 1-10 900 $1,000 Newspaper: 11-20 700 $900 Newspaper: 21-30 400 $800 Television: 1-5 10,000 $12,000 Television: 6-10 7,500 $10,000 Television: 11-15 5,000 $8,000 For instance, each of the first 10 ads the company places in newspapers will cost $1,000 and is expected to reach 900 new customers. Each of the next 10 newspaper ads will cost $900 and is expected to reach 700 new customers. Note that the number of new customers reached by increasing amounts of advertising decreases as the advertising saturates the market. Assume the company will purchase no more than 30 newspaper ads and no more than 15 television ads.
Consider the following scenario and select the best answer: A company is trying to determine how to allocate its $145,000 advertising budget for a new product. The company is considering newspaper ads and television commercials as its primary means for advertising. The following table summarizes the costs of advertising in these different media and the number of new customers reached by increasing amounts of advertising. Media & No. of Ads No. of New Customers Cost per Ad Reached Newspaper: 1-10 900 $1,000 Newspaper: 11-20 700 $900 Newspaper: 21-30 400 $800 Television: 1-5 10,000 $12,000 Television: 6-10 7,500 $10,000 Television: 11-15 5,000 $8,000 For instance, each of the first 10 ads the company places in newspapers will cost $1,000 and is expected to reach 900 new customers. Each of the next 10 newspaper ads will cost $900 and is expected to reach 700 new customers. Note that the number of new customers reached by increasing amounts of advertising decreases as the advertising saturates the market. Assume the company will purchase no more than 30 newspaper ads and no more than 15 television ads.
College Algebra (MindTap Course List)
12th Edition
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:R. David Gustafson, Jeff Hughes
Chapter6: Linear Systems
Section6.8: Linear Programming
Problem 5SC: If during the following year it is predicted that each comedy skit will generate 30 thousand and...
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Transcribed Image Text:Consider the following scenario and select the best answer:
A company is trying to determine how to allocate its $145.000 advertising budget for a new product. The company is considering newspaper ads and television commercials
as its primary means for advertising. The following table summarizes the costs of advertising in these different media and the number of new customers reached by increasing
amounts of advertising.
Media & No. of Ads
No. of New Customers
Cost per Ad
Reached
Newspaper: 1-10
900
$1,000
Newspaper: 11-20
700
$900
Newspaper: 21-30
400
$800
Television: 1-5
10,000
$12,000
Television: 6–10
7,500
$10,000
Television: 11-15
5.000
$8,000
For instance, each of the first 10 ads the company places in newspapers will cost $1,000 and is expected to reach 900 new customers. Each of the next 10 newspaper ads will
cost $900 and is expected to reach 700 new customers. Note that the number of new customers reached by increasing amounts of advertising decreases as the advertising
saturates the market. Assume the company will purchase no more than 30 newspaper ads and no more than 15 television ads.
What would the variable cells in this problem represent?
O TV Ads
O Newspaper Ads
O New customers
O Profit
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