Dorian Auto manufactures luxury cars and trucks. The company believes that its m

Question

Dorian Auto manufactures luxury cars and trucks. The company believes that its most likely customers are high-income women and men. To reach these groups, Dorian Auto has started an ambitions TV-advertising via purchasing 1-minute commercials spots on 2 type of programs: comedy shows and football games. Each comedy commercial is seen by 7 million high-income women and 2 million high-income men and costs $50,000 (1 minute commercial). Each football game is seen by 2 million high-income women and 12 million high-income men and 1 minute commercial costs $100,000. Dorian Auto likes the commercials to be seen by at least 28 million high-income women and at least 24 million high-income men. (a) By using appropriate decision variables formulate an LPP whose solution tells Dorian Auto how to meet its advertising requirements at a minimum costs. (b) By using the integer set in the FR and iso-cost lines solve the LPP from (a) graphically. The optimal solutions must meet the Divisibility Assumption for Dorian Auto: ONLY 1 minute commercials are available.

Explanation / Answer

(a) DORIAN should opt for..2 football game commercials which would cost him to 200,000$ and .. 4 comedy show commercials which will cost him 200,00 .... !! you can reach to this conclusions by taking all possibilities and try on trial and error basis...!!! this sums up to 400,000 and no better combination possible... this could reach to 32million high income men and 32M high income women...!!

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