Island Publishing Company publishes two types of magazines on a monthly basis: a restaurant and entertainment guide and a real estate guide.The company distributes the magazines free to businesses, hotels, and stores on Hilton Head Island in South Carolina. The company's profitscome exclusively from the paid advertising in the magazines. Each of the restaurant and entertainment guides distributed generates $0.50 permagazine in advertising revenue, whereas the real estate guide generates $0.75 per magazine. The real estate magazine is a more sophisticatedpublication that includes color photos, and accordingly it costs $0.25 per magazine to print, compared with only $0.17 for the restaurant andentertainment guide. The publishing company has a printing budget of $4,000 per month. There is enough rack space to distribute at most 18,000magazines each month. In order to entice businesses to place advertisements, Island Publishing promises to distribute at least 8,000 copies ofeach magazine. The company wants to determine the number of copies of each magazine it should print each month in order to maximizeadvertising revenue What would be the effect on the optimal solution if the local real estate agents insisted that 12,000 copies of the real estate guide be distributed instead of the current 8,000 copies, or they would withdraw their advertising?
Island Publishing Company publishes two types of magazines on a monthly basis: a restaurant and entertainment guide and a real estate guide.
The company distributes the magazines free to businesses, hotels, and stores on Hilton Head Island in South Carolina. The company's profits
come exclusively from the paid advertising in the magazines. Each of the restaurant and entertainment guides distributed generates $0.50 per
magazine in advertising revenue, whereas the real estate guide generates $0.75 per magazine. The real estate magazine is a more sophisticated
publication that includes color photos, and accordingly it costs $0.25 per magazine to print, compared with only $0.17 for the restaurant and
entertainment guide. The publishing company has a printing budget of $4,000 per month. There is enough rack space to distribute at most 18,000
magazines each month. In order to entice businesses to place advertisements, Island Publishing promises to distribute at least 8,000 copies of
each magazine. The company wants to determine the number of copies of each magazine it should print each month in order to maximize
advertising revenue What would be the effect on the optimal solution if the local real estate agents insisted that 12,000 copies of the real estate guide be
distributed instead of the current 8,000 copies, or they would withdraw their advertising?
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