Question

The Fashion Store has $6000 available each month for advertising. Newspaper ads cost $200 apiece and no more than 20 can be run per month. Radio ads cost $100 each and no more than 30 can run per month. TV ads cost $800 a piece, with a maximum of 7 available each month. Approximately 1000 women will see each newspaper ad, 800 will hear each radio ad, and 14,000 will see each TV ad. How much of each type of advertising should be used if the store wants to maximize exposure?

Answer 1

9514 1404 393

Answer:

• 7 TV ads
• 4 radio ads

Step-by-step explanation:

The audience per dollar is ...

  Newspaper: 1000/$200 = 5/$

  Radio: 800/$100 = 8/$

  TV: 14000/$800 = 17.5/$

So, TV gives the greatest exposure. As much of the budget as possible should be spent on TV ads. That amount is the lesser of $6000 and ...

  (7 ads)($800/ad) = $5600

With $5600 spent on TV ads, the remaining advertising budget is ...

  $6000 -5600 = $400

The next most cost-effective medium is radio. The remaining $400 budget allows for ...

  $400/($100/ad) = 4 ads

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To maximize exposure, the advertising budget should be spent this way:

• TV: 7 ads for $5600, exposure of 98000
• Radio: 4 ads for $400, exposure of 3200