A Company advertises its weekly sales in newspapers, television, and radio. Each rupee spent in advertising...

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A Company advertises its weekly sales in newspapers, television, and radio. Each rupee spent in advertising in newspapers is estimated to reach an exposure of 12 buying customers; each rupee in TV reaches an exposure of 15 buying customers; an each rupee in radio reaches an exposure of 10 buying customers. The company has an agreement with all three media services according to which it will spend not less than 20 percent of its total money actually expended in each medium. Further, it is agreed that the combined newspaper and television budget will not be larger than three times the radio budget. The company has just decided to spend no more than 17 thousand rupees on advertising. The problem is how much should the company budget for each medium if it is interested in reaching as many buying customers as possible. A Company advertises its weekly sales in newspapers, television, and radio. Each rupee spent in advertising in newspapers is estimated to reach an exposure of 12 buying customers; each rupee in TV reaches an exposure of 15 buying customers; an each rupee in radio reaches an exposure of 10 buying customers. The company has an agreement with all three media services according to which it will spend not less than 20 percent of its total money actually expended in each medium. Further, it is agreed that the combined newspaper and television budget will not be larger than three times the radio budget. The company has just decided to spend no more than 17 thousand rupees on advertising. The problem is how much should the company budget for each medium if it is interested in reaching as many buying customers as possible.

Answer rating: 100% (QA)

SOLUTION To determine the budget allocation for each medium in order to reach as many buying custome... View the full answer