Find the best product mix of bathtubs

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1. The advertising agency promoting a new product is hoping to get the best possible exposure in terms of the number of people the advertising reaches. The agency will use a two-pronged approach: focused Internet advertising, which is estimated to reach 200,000 people for each burst of advertising, and print media, which is estimated to reach 80,000 peo- ple each time an ad is placed. The cost of each Inter- net burst is $3,000, as opposed to only $900 for each print media ad. It has been agreed that the number of print media ads will be no more than five times the number of Internet bursts. The agency hopes to launch at least 5 and no more than 15 Internet bursts of advertising. The advertising budget is $75,000. Given these constraints, what is the most effective advertising strategy?

2. A small motor manufacturer makes two types of mo- tor, models A and B. The assembly process for each is similar in that both require a certain amount of wiring, drilling, and assembly. Each model A takes 3 hours of wiring, 2 hours of drilling, and 1.5 hours of assembly. Each model B must go through 2 hours of wiring, 1 hour of drilling, and 0.5 hours of assem- bly. During the next production period, 240 hours of wiring time, 210 hours of drilling time, and 120 hours of assembly time are available. Each model A sold yields a profit of $22. Each model B can be sold for a $15 profit. Assuming that all motors that are assembled can be sold, find the best combination of motors to yield the highest profit.

3. A plumbing manufacturer makes two lines of bath- tubs, model A and model B. Every tub requires blending a certain amount of steel and zinc; the company has available a total of 24,500 pounds of steel and 6,000 pounds of zinc. Each model A bath- tub requires a mixture of 120 pounds of steel and 20 pounds of zinc, and each yields a profit of $90. Each model B tub produced can be sold for a profit of $70; it requires 100 pounds of steel and 30 pounds of zinc. To maintain an adequate supply of both models, the manufacturer would like the number of model A tubs made to be no more than 5 times the number of model B tubs. Find the best product mix of bathtubs.

Reference no: EM131555099

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