Create the spreadsheet model and use solver

Assignment Help Marketing Management

Reference no: EM132690241

Question 1: A company is trying to determine how to allocate its $145,000 advertising budget for a new product. The company is considering newspaper ads and television commercials as its primary means for advertising. The following table summarizes the costs of advertising in these different media and the number of new customers reached by increasing amounts of advertising:

Media & Number of Ads	Number of New Customers Reached	Cost Per Ad In Dollars
Newspaper: 1-10	1900	1,000
Newspaper: 11- 20	1700	900
Newspaper: 21 - 30	1400	800
Television: 1- 5	10,000	12,000
Television: 6 -10	7,500	10,000
Television: 11 - 15	5,000	8,000

For instance, each of the first 10 ads the company places in newspapers will cost $1,000 and is expected to reach 1900 new customers. Each of the next 10 newspaper ads will cost $900 and is expected to reach 1700 new customers. Note that the number of new customers reached by increasing amounts of advertising decreases as the advertising saturates the market. Assume the company will purchase no more than 30 newspaper ads and no more than 15 television ads. How many ads should the company place to maximize the number of new customers reached by advertising?

1. Formulate the LP model for this problem.

2. Create the spreadsheet model and use Solver to solve the problem.

Reference no: EM132690241

Questions Cloud

What should be done about the pay : Jim is given an extremely large raise because of his superb work record one year. As aresult, he is currently earning $50,000 whereas others at the firm.

What is your impression about its other hr activities : Find out an organization of the country that provides maternity benefit. How do you know them? What is your impression about its other HR activities?

Explain factors that will affect the process of recruitment : Hiring managers frequently panic call, worried about filling a vacant position. The workload is too much for the remaining staff. More employees will quit.

Which approaches of ethical decision-making have you used : Jim is given an extremely large raise because of his superb work record one year. As aresult, he is currently earning $50,000 whereas others at the firm holding

Create the spreadsheet model and use solver : Formulate the LP model for this problem and Create the spreadsheet model and use Solver to solve the problem

Describe various types of community fire and life safety : Develop knowledge and skills on how to Prevent, Protect and Respond to various types of fire and rescue incidents - practical firefighter skills necessary

SEC4204 Fundamentals in Computer Programming Assignment : SEC4204 Fundamentals in Computer Programming Assignment Help and Solution, HND in Computing and Software Engineering - Assessment Writing Service

SEC4206 Fundamentals in Networking : SEC4206 Fundamentals in Networking Assignment Help and Solution, HND in Computing / Network Engineering - Assessment Writing Service

Explore data management techniques and apply : Explore data management techniques and apply when and where applicable and Analyse and apply data issues in an organisational context.

User Account

All Pages