Question: i) The budget cannot be exceeded. The amount spent on direct marketing cannot exceed $250,000. No more than $125,000 can be spent on industry conferences.

i) The budget cannot be exceeded. The amount

i) The budget cannot be exceeded. The amount

i) The budget cannot be exceeded. The amount spent on direct marketing cannot exceed $250,000. No more than $125,000 can be spent on industry conferences. At least $250,000 should be devoted to the business-finding group. Up to $125,000 can be spent on billboards. Television ad spending should be between $50,000 and $150,000. The amount spent on the business finding group cannot exceed the combined amount spent on direct marketing, industry conferences, and billboards. vii) The optimal solution is (DM, IC, BFG, B, T) = (225, 125, 475, 125, 50), with an objective function value of 705 (all values in thousands). Because of the uncertainty inherent in making projections one year forward, Giannis has produced the sensitivity report for this linear programming model: Cell $C$1 $C$2 $C$3 $C$4 $C$5 Final Name Value DM 225 IC 125 BFG 475 B 125 T 50 Reduced Objective Cost Coefficient 0 0.2 0 0.6 0 1.1 0 0.3 0 0.5 Allowable Allowable Increase Decrease 0.1 0.3 1E+30 0.4 1E+30 0.3 1E+30 0.1 0.15 1E+30 Shadow Price 0.65 0 25 Final Cell Name Value $B$8 i) 1000 $B$9 ii) 225 $B$10 iii) 125 $B$11 iv) 475 $B$12 v) 125 $B$13 vi) (a) 50 $B$14 vi) (b) 50 $B$15 vii 475 0.4 0 0.1 -0.15 0 Constraint Allowable Allowable R.H. Side Increase Decrease 1000 50 450 250 1E+30 25 125 225 250 225 1E+30 125 225 25 50 100 50 0 1E+30 100 0 450 50 0.45 e) What would happen if the amount that can be spent on direct marketing increased to $300,000? f) What would happen if the minimum television ad spending was decreased to 25,000? g) What would happen if the maximum amount of industry conference spending were to increase to $150,000

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