Capital Investments has to decide how much money to allocate to advertise their financial products next...

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Capital Investments has to decide how much money to allocate toadvertise their financial products next year. The company is alsoconsidering offering more innovative cutting-edge financialproducts that will cater to a new market segment. The marketingdepartment was given $10 million to work with. Capital Investmentswant to push their new investment products and decided that atleast one-half of the advertising budget should be devoted to theirnew product line. To make sure that their current products aregiven the right amount of exposure, the company plans to spend atleast $2 million to advertise these. The marketing departmentestimates that each dollar spent on their current products willresult into 100 completed financial transactions with the company.However, for their new products, the marketing team estimated thateach dollar spent on advertising these will only translate into 50completed financial transactions. To attract more new clients,Capital Investments has lowered their contribution margin to 2cents per transaction, as compared with 4 cents per transaction fortheir existing products. Instructions: 1) Help Capital Investmentdetermine the best allocation of its advertising dollars if itwants to maximize its profits while closing at least 750 milliontransactions next year. Note: Show your complete LP model and finalanswers for this problem. Be sure to include the following in yoursolution: Objective Function Constraints Allocated advertising $$$for current products Allocated advertising $$$ for new productsOptimal value of the objective function 2) Briefly discuss yourthinking process or approach on this problem. 3) Based on yourrecommended optimal allocation, recommend an effective marketingstrategy for Capital Investments.

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pleaselike this answer so that I can get a small benefitpleaseAnswer1VariableDefinitionX Capital spent on marketing new products In MillionsY Capital spent on marketing current products InMillionsObjective functionThecompany wants to maximize    See Answer
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