Problem 4-01 (Algorithmic)

The Westchester Chamber of Commerce periodically sponsors publicservice seminars and programs. Currently, promotional plans areunder way for 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	100000	18000	40000
Cost per advertisement	$1400	$300	$600
Maximum media usage	10	20	10

To ensure a balanced use of advertising media, radioadvertisements must not exceed 50% of the total number ofadvertisements authorized. In addition, television should accountfor at least 10% of the total number of advertisementsauthorized.

1. If the promotional budget is limited to$16,400, how many commercial messages should berun on each medium to maximize total audience contact? What is theallocation of the budget among the three media? If required, roundyour answers to the nearest dollar.
   

   Let	T = number of television spot advertisements
   	R = number of radio advertisements
   	O = number of online advertisements

   	Budget ($)
   T =
   R =
   O =
   	Total Budget = $ Â

   
   What is the maximum total audience that would be reached? Roundyour answer to the nearest whole number.
   
   
   
2. By how much would audience contact increase if an extra $100were allocated to the promotional budget? Round your answer to thenearest whole number.