Question: Win Big Gambling Club promotes gambling junkets from a large Midwestern city to casinos in the Bahamas. The club has budgeted up to $8,000

Win Big Gambling Club promotes gambling junkets from a large Midwestern city

Win Big Gambling Club promotes gambling junkets from a large Midwestern city to casinos in the Bahamas. The club has budgeted up to $8,000 per week for local advertising. The money is to be allocated among four promotional media: TV spots, newspaper ads, and two types of radio advertisements. Win Big's goal is to reach the largest possible high-potential audience through the various media. The following Table presents the number of potential gamblers reached by making use of an advertisement in each of the four media. It also provides the cost per advertisement placed and the maximum number of ads that can be purchased per we Medium TV spot (1 minute) Daily news paper (full-page ad) Radio spot (30 seconds prime time) Radio spot (1 minute afternoon) Audience Reached Cost per Ad 5.000 8.500 2,400 2,800 Maximum Ads per Ad (S) per Week 800 12 925 5 290 25 380 20 Win Big's contractual arrangements require that at least five radio spots be placed each week. To ensure a broad-scoped promotional campaign, management also insists that no more than $1,800 be spent on radio advertising every week. Determine the optimal mix of these advertising mediums using Linear Programming.

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