A car dealership needs to determine how to allocate its $20,000 advertising budget. They have estimated the
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A car dealership needs to determine how to allocate its $20,000 advertising budget. They have estimated the expected profit from each dollar (X) spent in four different advertising media as follows:
Medium Expected Profit
Newspaper ......100X0.7
Radio ........125X0.65
TV .........180X0.6
Direct Mail ......250X0.5
If the company wants to spend at least $500 on each medium, how should it allocate its advertising budget to maximize profit?
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Related Book For
Spreadsheet Modeling & Decision Analysis A Practical Introduction to Management Science
ISBN: 978-0324656633
5th edition
Authors: Cliff T. Ragsdale
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