a) DToys is planning a new social media and TV advertising campaign to reach people. A total budget of $30k is allocated to the campaign and the campaign must run on or within the budget. Moreover, to meet the development needs of the company, at least $10k must be allocated to each medium. It is estimated that every $1k spent on social media ad will reach 15 people and every $1k spent on TV ad will reach 10 people.
How should the budgeted amount be allocated between social media and TV? State verbally the objective, constraints and decision variables. Then formulate the problem as an LP model. After that, solve it using the graphical solution procedure.

b) Show that the worth per additional $1k of budget is reaching 15 more people, which is the same as the number of people reached per $1k spent on social media ad. Interpret what this result means in terms of allocating additional budget.

Answer rating: 100% (QA)

Let the and the objective Max R 1000 constraints total budget Soc... View the full answer