Question

Golden Oldies sells CDs of formerly popular singers and groups. Its customers tend to be middle age or older, so the firm advertises on TV, in magazines, and through direct mailing of catalogs. On average, it sells to four customers for every 1,000 people watching a TV commercial. These customers reply within two weeks of the time the commercial is shown.
Catalogs are always sent out at the end of each month because people tend to pay their bills at that time. Research shows that 0.5% of the catalogs will result in a purchase during the month following the mailing. Magazine advertisements generate about 25 responses per 10,000 subscribers in the month the magazine is published, 6 responses per 10,000 subscribers in the month after publication, and 1 response per 10,000 in the second month following publication.
Golden Oldies is currently marketing the rock group “Beancounters.” Advertisements will be placed in the February issue of magazines having total subscribers of 6,500,000. It will also send out 800,000 catalogs in February. In addition, 20 late-night TV commercials will air in the first two weeks of February. The commercials should reach 18 million viewers.

REQUIRED
Calculate the budgeted number of Beancounters CDs sold per month for February through April, assuming no other sales in March and April.



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  • CreatedJanuary 26, 2015
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