Honda is planning a promotional campaign intended to bring prospective buyers of new cars to its...

 

Transcribed Image Text:

Honda is planning a promotional campaign intended to bring prospective buyers of new cars to its showrooms. To every prospective buyer who drops by on a given day, Honda will pay P150. Honda wants to advertise its "P150-a-Look" offer to the public but in order to hold down costs, it wants to get as many serious buyers as possible without attracting too many freeloaders. It is considering advertising on 2 TV shows. The cost of a commercial on each show, as well as the estimates of drawing power per commercial in terms of serious buyers and freeloaders, are given in the following table. TV Show Cost/Ad No. of Serious Buyers American Movie P 85,000 P 105,000 900 No. of Freeloaders 4,500 Korean Movie 1250 3,800 There are at most 4 units of American and 4 units of Korean movie advertising available. Honda hopes to keep total costs (advertising plus the P150 gifts) at or below P2,800,000. The company needs to determine the optimal plan for drawing as many serious buyers as possible. Provide the needed Decision Variables. List all possible variables. Honda is planning a promotional campaign intended to bring prospective buyers of new cars to its showrooms. To every prospective buyer who drops by on a given day, Honda will pay P150. Honda wants to advertise its "P150-a-Look" offer to the public but in order to hold down costs, it wants to get as many serious buyers as possible without attracting too many freeloaders. It is considering advertising on 2 TV shows. The cost of a commercial on each show, as well as the estimates of drawing power per commercial in terms of serious buyers and freeloaders, are given in the following table. TV Show Cost/Ad No. of Serious Buyers American Movie P 85,000 P 105,000 900 No. of Freeloaders 4,500 Korean Movie 1250 3,800 There are at most 4 units of American and 4 units of Korean movie advertising available. Honda hopes to keep total costs (advertising plus the P150 gifts) at or below P2,800,000. The company needs to determine the optimal plan for drawing as many serious buyers as possible. Provide the needed Decision Variables. List all possible variables.

Answer rating: 100% (QA)

In this problem Honda needs to determine the optimal advertising plan to attract as many serious buy... View the full answer