The Denver advertising agency promoting the new Breem dishwashing detergent wants to get the best exposure possible for the product within the 100,000 advertising budget ceiling placed on it. To do​ so, the agency needs to decide how much of the budget to spend on each of its two most effective​ media: (1) television spots during the afternoon hours and​ (2) large ads in the​ city's Sunday newspaper. Each television spot costs 3,000​; each Sunday newspaper ad costs 1,250. The expected​ exposure, based on industry​ ratings, is 35,000 viewers for each TV commercial and 20,000 readers for each newspaper advertisement. The agency​ director, Deborah​ Kellogg, knows from experience that it is important to use both media in order to reach the broadest spectrum of potential Breem customers. She decides that at least 10 but no more than 20 television spots should be​ ordered, and that at least 10 newspaper ads should be contracted.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter13: Regression And Forecasting Models
Section13.6: Moving Averages Models
Problem 19P: The file P13_19.xlsx contains the weekly sales of a particular brand of paper towels at a...
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The Denver advertising agency promoting the new Breem dishwashing detergent wants to get the best exposure possible for the product within the

100,000

advertising budget ceiling placed on it. To do​ so, the agency needs to decide how much of the budget to spend on each of its two most effective​ media: (1) television spots during the afternoon hours and​ (2) large ads in the​ city's Sunday newspaper. Each television spot costs

3,000​;

each Sunday newspaper ad costs

1,250.

The expected​ exposure, based on industry​ ratings, is

35,000

viewers for each TV commercial and

20,000

readers for each newspaper advertisement. The agency​ director, Deborah​ Kellogg, knows from experience that it is important to use both media in order to reach the broadest spectrum of potential Breem customers. She decides that at least

10

but no more than

20

television spots should be​ ordered, and that at least

10

newspaper ads should be contracted.

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