The Chamber of Commerce periodically sponsors public service seminars and programs. Currently, promotional plans are under way for this year's program. Advertising alternatives include television, radio, and newspaper. Audience estimates, costs, and maximum media usage limitations are as shown:

 Constraint                                          Television        Radio         Newspaper
Audience per advertisement             110,000       17,000          30,000
Cost per advertisement                        $2,500          $300              $500
Maximum media usage                          10                   23                  10

To ensure a balanced use of advertising media, radio advertisements must not exceed 40% of the total number of advertisements authorized. In addition, television should account for at least 10% of the total number of advertisements authorized.

(a)

If the promotional budget is limited to $20,500, how many commercial messages should be run on each medium to maximize total audience contact?

Advertisement Alternatives	No of commercial messages
Television_______
Radio_________
Newspaper__________

What is the allocation of the budget among the three media?

Advertisement Alternatives	Budget ($)
Television	$ ________
Radio	$ ________
Newspaper	$ _______

What is the total audience reached?__________

(b)

By how much would audience contact increase if an extra $100 were allocated to the promotional budget?

Increase in audience coverage of approximately _____________

Answer rating: 100% (QA)

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