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What is the allocation of the budget

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Question - Temax realtor company advertises for its business through television, radio, and online. Audience estimates, costs, and maximum media usage limitations are as shown:

Constraint Television Radio Online

Audience per advertisement 100000 18000 40000

Cost per advertisement 1800 300 600

Maximum media usage 12 16 12

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.

1. If the promotional budget is limited to $17600, how many commercial messages should be run on each medium to maximize total audience contact? What is the allocation of the budget among the three media, and what is the total audience reached? (Don't worry if your answer is in decimals).

2. By how much would audience contact increase if an extra $100 were allocated to the promotional budget?

Reference no: EM133057775

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