Green Lawns provides a lawn fertilizer and weed control service. The company is adding a special aeration
Question:
where
S = total sales in thousands of dollars
R = thousands of dollars spent on radio advertising
M = thousands of dollars spent on direct-mail advertising
Green Lawns would like to develop a promotional strategy that will lead to maximum sales subject to the restriction provided by the media budget.
a. What is the value of sales if $2,000 is spent on radio advertising and $1,000 is spent on direct-mail advertising?
b. Formulate an optimization problem that can be solved to maximize sales subject to the media budget of spending no more than $3,000 on total advertising.
c. Determine the optimal amount to spend on radio and direct-mail advertising. How much in sales will be generated?
Step by Step Answer:
Essentials of Business Analytics
ISBN: 978-1285187273
1st edition
Authors: Jeffrey Camm, James Cochran, Michael Fry, Jeffrey Ohlmann, David Anderson, Dennis Sweeney, Thomas Williams