The manufacturer of GRIPPER tires modeled its return to sales from television advertising expenditures in two regions, as follows:
Region 1: S1 =30 + 20x1 - 0.4x12
Region 2: S2 =20 + 36x2 - 1.3x22
Where S1 and S2 are the sales revenue in millions of dollars and x1 and x2 are millions of dollars of expenditures for television advertising.
(a) What advertising expenditures would maximize sales revenue in each district?
(b) How much money will be needed to maximize sales revenue in both districts?