GreenLawns provides a lawn fertilizer and weed control service. The company is adding a special aeration treatment
Question:
S = -2R2 - 10M2 - 8RM + 18R + 34M
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
GreenLawns 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 $2000 is spent on radio advertising and $1000 is spent on direct-mail advertising?
b. Formulate an optimization problem that can be solved to maximize sales subject to the media budget.
c. Determine the optimal amount to spend on radio and direct-mail advertising. How much in sales will be generated?
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Related Book For
Quantitative Methods for Business
ISBN: 978-0324651751
11th Edition
Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey cam
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