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 Audience per advertisement Cost per advertisement Maximum media usage Television Radio Online 200,000 36,000 80,000 $2,000 $300 $600 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 6 10 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 $12000 6000 (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.)
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 Audience per advertisement Cost per advertisement Maximum media usage Television Radio Online 200,000 36,000 80,000 $2,000 $300 $600 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 6 10 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 $12000 6000 (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.)
Chapter1: Making Economics Decisions
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Transcribed Image Text: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
Audience per advertisement
Cost per advertisement
Maximum media usage
Television Radio Online
200,000 36,000 80,000
$2,000
$300 $600
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
6
10
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
$12000
6000
(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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