Question: bmodel. EML estimates that the response rate for the current customer market is 2 5 % , and the response rate for the new customer
bmodel. EML estimates that the response rate for the current customer market is
and the response rate for the new customer market is
For the customers who test drive the new model, the sales rate is the percentage of individuals that make a purchase. Marketing research studies indicate that the sales rate is
for the current customer market and
for the new customer market. The cost for each promotion, excluding the test drive costs, is $ for each promotion sent to the current customer market and $ for each promotion sent to the new customer market. Management also specified that a minimum of current customers should test drive the new model and a minimum of new customers should test drive the new model. In addition, the number of current customers who test drive the new vehicle must be at least twice the number of new customers who test drive the new vehicle. If the marketing budget, excluding test drive costs, is $ million, how many promotions should be sent to each group of customers in order to maximize total salesmodel. EML estimates that the response rate for the current customer market is
and the response rate for the new customer market is
For the customers who test drive the new model, the sales rate is the percentage of individuals that make a purchase. Marketing research studies indicate that the sales rate is
for the current customer market and
for the new customer market. The cost for each promotion, excluding the test drive costs, is $ for each promotion sent to the current customer market and $ for each promotion sent to the new customer market. Management also specified that a minimum of current customers should test drive the new model and a minimum of new customers should test drive the new model. In addition, the number of current customers who test drive the new vehicle must be at least twice the number of new customers who test drive the new vehicle. If the marketing budget, excluding test drive costs, is $ million, how many promotions should be sent to each group of customers in order to maximize total sales
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