Given conditions: Budeget limitation is $18,200. #) Telivision should account fo

Question

Given conditions:

Budeget limitation is $18,200.

#) Telivision should account for 10% of budget. As the budget is 18,200, 10% of 18,200 is 1820. But the minimum cost of advertising is $2000. So atleast $2000 budget need to be allocated.

#)Media advertsing should not account for more than 50% of the number of attachments.

Going by the audience/per dollar table we need to give more preference to Newspaper advertisements. But the number of ads are limited to 10. The total news paper ad budget is (10*600) i.e $6000. Viewership is (10*40000) i.e 400,000.

Although as per table we need to go for Radio advertisements. But as mentioned the number of advertisements need to be below 50% of total advertisements. And if we all 20 advertisements to feature, the maximum budget for Radio advertisment is $6000

So within the limited budget left after allocating to newspaer advertisement, we can allocate maximum 6 advertisements for Television. But considering the second constraint we will run 4 advertisemts worth (4*2000) $8000. And the viewership is (4*100000) 400,000.

with the remaining budget of 4200 we can run 14 advertisments(14*300=4200) in Radio(i.e exactly the same number of both newspaper, television combined). So the viewership is (14*18000) 252000.

a) Total of 28 advertisments(10- Newspaper, 4- television, 14- Radio) to maximize vieweship.

b)

Total viewship is 1,052,000 audience

c) There will not be any change in the viewership even though the alloted budget is increased by $100. As we cannot come up with any additional ads with the increased amount.

Kindly comment your doubts in the comment section. I would be very much happy to assist you in depth explanation

Regards
satish kumar

Television Radio Newspaper audience per advertisement 100000 18000 40000 cost per advertisement $2000 $300 $600 audience/per dollar 50 60 66.67

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