Reconsider the Profit & Gambit Co. problem described in Section 2.6. Suppose that the estimated data given in Table 2.2 now have been changed as shown in the table that accompanies this problem.

TABLE 2.2: Data for the Profit & Gambit Co. Advertising- Mix Problem

a. Formulate and solve a linear programming model on a spreadsheet for this revised version of
the problem.
b. Formulate this same model algebraically.
c. Use the graphical method to solve this model.
d. What were the key changes in the data that caused your answer for the optimal solution to change from the one for the original version of the problem?

e. Write a paragraph to the management of the Profit & Gambit Co. presenting your conclusions from the above parts. Include the potential effect of further refining the key data in the below table. Also point out the leverage that your results might provide to management in negotiating a decrease in the unit cost for either of the advertising media?

Increase in Sales per Unit of Advertising Minimum Required Increase Television Print Media 1% Product Stain remover Liquid detergent Powder detergent 0% 3% 18 4 2 -1 $1 million $2 million Unit cost Increase in Sales per Unit of Advertising Minimum Required Television Print Media Increase Product Stain remover 0% 1.5% 3% Liquid detergent Powder detergent 4 18 -1 4 Unit cost $1 million $2 million