4. Orange Company is allocating its advertising budget for its new smartphone ta

Question

4. Orange Company is allocating its advertising budget for its new smartphone targeting graduate and undergraduate students in RTP. The company has invited representatives from the local radio station, television station, and newspaper to make presentations in which they describe their audiences. The television station representative indicates that a TV commercial, which costs $15,000, would reach 25,000 potential customers per ad. The breakdown of the audience is as follows: Male Female Graduate 5,000 5,000 Undergraduate 5,000 10,000 The newspaper representative claims to be able to provide an audience of 10,000 potential customers at a cost of $4,000 per ad. The breakdown of the audience is as follows: Male Female Graduate 4,000 3,000 Undergraduate 2,000 1,000 The radio station representative says that every radio commercial has an audience of 15,000 at a cost of $6,000. The breakdown of the audience is as follows. Male Female Graduate 1,500 1,500 Undergraduate 4,500 7,500 Orange Company has the following advertising policy:

Explanation / Answer

radio 3 newspaper 2 tv 1

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