Tagong Gubat Amusement Park wishes to advertise the new attractions that have been recently added. The...

 

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Tagong Gubat Amusement Park wishes to advertise the new attractions that have been recently added. The alternatives being considered are television, radio, and newspapers. The table below lists the cost per advertisement, number of audience contacts per advertisement, and the maximum number of advertisements that can placed during the promotion period for the three media. Television Radio Newspaper Factor Prime Time Other Time Prime Time Other Time Weekdays Sundays Advertisement cost, P 150,000 90,000 25,000 15,000 30,000 40,000 Audience contacts 90,000 45,000 20,000 12,000 30,000 40,000 Maximum ads The total budget allocated to Tagong Gubat Amusement Park's promotion campaign is P1,500,000. To 6 10 13 25 10 4 spread the advertisements in a manner that will reach the maximum audience and avoid too much repetition in reaching the same audience, the advertising agency advises adopting the following rules: Expenditures in any one media should not exceed 50% of the total budget. At least 20% of the total budget should be spent in each of the three media. • Expenditures for prime-time television should be at least twice, but not more than five times, the expenditures for other times on television. Expenditures for prime-time radio should be at least twice, but not more than ten times, the expenditures for other times on radio. a. How should the total budget be spent? How much of the P1,500,000 budget will be left unspent? b. How many audience contacts will result in each of the six categories, and what is the total? c. How are the answers to a and b above be affected if the budget is increased to P2,000,000? to P2,500,000? Tagong Gubat Amusement Park wishes to advertise the new attractions that have been recently added. The alternatives being considered are television, radio, and newspapers. The table below lists the cost per advertisement, number of audience contacts per advertisement, and the maximum number of advertisements that can placed during the promotion period for the three media. Television Radio Newspaper Factor Prime Time Other Time Prime Time Other Time Weekdays Sundays Advertisement cost, P 150,000 90,000 25,000 15,000 30,000 40,000 Audience contacts 90,000 45,000 20,000 12,000 30,000 40,000 Maximum ads The total budget allocated to Tagong Gubat Amusement Park's promotion campaign is P1,500,000. To 6 10 13 25 10 4 spread the advertisements in a manner that will reach the maximum audience and avoid too much repetition in reaching the same audience, the advertising agency advises adopting the following rules: Expenditures in any one media should not exceed 50% of the total budget. At least 20% of the total budget should be spent in each of the three media. • Expenditures for prime-time television should be at least twice, but not more than five times, the expenditures for other times on television. Expenditures for prime-time radio should be at least twice, but not more than ten times, the expenditures for other times on radio. a. How should the total budget be spent? How much of the P1,500,000 budget will be left unspent? b. How many audience contacts will result in each of the six categories, and what is the total? c. How are the answers to a and b above be affected if the budget is increased to P2,000,000? to P2,500,000?

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