(a) Blitz Beer has allotted $10,000 for radio advertising in Gotham City and must determine the...

  

Transcribed Image Text:

(a) Blitz Beer has allotted $10,000 for radio advertising in Gotham City and must determine the placement of spot advertisements that will maximize increased sales. Top-40 stations attract a heavier beer-drinking audience than golden-oldie stations do, but top- 40 stations also charge more for each spot. The following data apply. Station Cost per spot $100 Sales increase per spot Spots available $300 A 30 Format Top-40 Golden-oldie B $50 $120 unlimited с $75 $150 unlimited Golden-oldie D $150 $400 40 Top-40 At least 25% of the spots must be placed with golden-oldie stations. Formulate Blitz's problem as a linear programming problem. (15 marks) (b) (i) Find the optimal solution of the following Linear Programming problem, using Simplex method. Maximize -x, +3x₂+2x, (a) Blitz Beer has allotted $10,000 for radio advertising in Gotham City and must determine the placement of spot advertisements that will maximize increased sales. Top-40 stations attract a heavier beer-drinking audience than golden-oldie stations do, but top- 40 stations also charge more for each spot. The following data apply. Station Cost per spot $100 Sales increase per spot Spots available $300 A 30 Format Top-40 Golden-oldie B $50 $120 unlimited с $75 $150 unlimited Golden-oldie D $150 $400 40 Top-40 At least 25% of the spots must be placed with golden-oldie stations. Formulate Blitz's problem as a linear programming problem. (15 marks) (b) (i) Find the optimal solution of the following Linear Programming problem, using Simplex method. Maximize -x, +3x₂+2x,