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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