The Westchester Chamber of Commerce periodically sponsors public service seminars and programs. Currently, promotional plans...
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Accounting
The Westchester 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
200,000
36,000
80,000
Cost per advertisement
$2,000
$300
$600
Maximum media usage
10
20
10
To ensure a balanced use of advertising media, radio advertisements must not exceed 50% of the total number of advertisements authorized. In addition, television should account for at least 10% of the total number of advertisements authorized.
(a) If the promotional budget is limited to $22,800, how many commercial messages should be run on each medium to maximize total audience contact?
Television:
Radio:
Online:
What is the allocation of the budget among the three media, and what is the total audience reached?
Television Budget (in dollars):
Radio Budget (in dollars):
Online Budget (in dollars):
Total Audience:
(b) By how much would audience contact increase if an extra $100 were allocated to the promotional budget? (Round your answer to the nearest whole number.)
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