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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 newspaper. Audience estimates, costs, and maximum media usage

 

limitations are as shown:

 

Constraint

 

Audience per advertisement

 


 

Television Radio Newspaper

 

110,000

 


 

17,000

 


 

30,000

 


 

Cost per advertisement

 


 

$2,500

 


 

$300

 


 

$500

 


 

Maximum media usage

 


 

10

 


 

23

 


 

10

 


 

To ensure a balanced use of advertising media, radio advertisements must not exceed 40% 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 $20,500, how many commercial messages should be

 

run on each medium to maximize total audience contact?

 

Advertisement Alternatives

 


 

No of commercial

 

messages

 


 

Television

 

Radio

 

Newspaper

 

What is the allocation of the budget among the three media?

 

Advertisement Alternatives Budget ($)

 

Television

 

Radio

 

Newspaper

 


 

$

 

$

 

$

 


 

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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