What is the allocation of the budget among the three media

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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 Television Radio Newspaper
Audience per advertisement 100,000   18,000   40,000  
Cost per advertisement $2,000   $300   $600  
Maximum media usage 10   20   10  

To ensure a balanced use of advertising media, radio advertisements must not exceed 50% 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 $18,200, 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?

(b) By how much would audience contact increase if an extra $100 were allocated to the promotional budget?
Increase in audience coverage of approximately

Reference no: EM131873319

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