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The Sea Wharf Restaurant would like to determine the best way to allocate a monthly advertising budget of $8,000.00 between newspaper advertising and radio advertising. Management decided that at least 25% of the budget must be spent on each type of media and that the amount of money spent on local newspaper advertising must be at least twice the amount spent on radio advertising. A marketing consultant developed an index that measures audience exposure per dollar of advertising on a scale from 0 to 100, with higher values implying greater audience exposure. If the value of the index for local newspaper advertising is 60 and the value of the index for spot radio advertising is 70, how should the restaurant allocate its advertising budget to maximize the value of total audience exposure? (a) Formulate a linear programming model that can be used to determine how the restaurant should allocate its advertising budget in order to maximize the value of total audience exposure. (Assume N is the amount spent on newspaper advertising and R is the amount spent on radio advertising.) Max s.t. budget minimum newspaper spending minimum radio spending comparison radio and newspaper spending N, R ZO (b) Develop a spreadsheet model and solve the problem using Excel Solver. (Round the Newspaper Dollars Allocated and the Radio Dollars Allocated to the nearest cent. Round the Total Exposure Index to the nearest Integer.) Newspaper Dollars Allocated Radio Dollars Allocated Total Exposure Index Need Help? Read it $ $ Submit Answer

The Sea Wharf Restaurant would like to determine the best way to allocate a monthly advertising budget of $8,000.00 between newspaper advertising and radio advertising. Management decided that at least 25% of the budget must be spent on each type of media and that the amount of money spent on local newspaper advertising must be at least twice the amount spent on radio advertising. A marketing consultant developed an index that measures audience exposure per dollar of advertising on a scale from 0 to 100, with higher values implying greater audience exposure. If the value of the index for local newspaper advertising is 60 and the value of the index for spot radio advertising is 70, how should the restaurant allocate its advertising budget to maximize the value of total audience exposure? (a) Formulate a linear programming model that can be used to determine how the restaurant should allocate its advertising budget in order to maximize the value of total audience exposure. (Assume N is the amount spent on newspaper advertising and R is the amount spent on radio advertising.) Max s.t. budget minimum newspaper spending minimum radio spending comparison radio and newspaper spending N, R ZO (b) Develop a spreadsheet model and solve the problem using Excel Solver. (Round the Newspaper Dollars Allocated and the Radio Dollars Allocated to the nearest cent. Round the Total Exposure Index to the nearest Integer.) Newspaper Dollars Allocated Radio Dollars Allocated Total Exposure Index Need Help? Read it $ $ Submit Answer

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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The Sea Wharf Restaurant would like to determine the best way to allocate a monthly advertising budget of $8,000.00 between newspaper advertising and radio advertising. Management decided that at least 25% of the budget must be spent on each type of media and that the amount of money spent on local newspaper advertising must be at least twice the amount spent on radio advertising. A marketing consultant developed an index that measures audience exposure per dollar of advertising on a scale from 0 to 100, with higher values implying greater audience exposure. If the value of the index for local newspaper advertising is 60 and the value of the index for spot radio advertising is 70, how should the restaurant allocate its advertising budget to maximize the value of total audience exposure? (a) Formulate a linear programming model that can be used to determine how the restaurant should allocate its advertising budget in order to maximize the value of total audience exposure. (Assume N is the amount spent on newspaper advertising and R is the amount spent on radio advertising.) Max s.t. budget minimum newspaper spending minimum radio spending comparison radio and newspaper spending N, R ≥ 0 (b) Develop a spreadsheet model and solve the problem using Excel Solver. (Round the Newspaper Dollars Allocated and the Radio Dollars Allocated to the nearest cent. Round the Total Exposure Index to the nearest integer.) Newspaper Dollars Allocated $ Radio Dollars Allocated $ Total Exposure Index Need Help? Read It Submit Answer
Transcribed Image Text:The Sea Wharf Restaurant would like to determine the best way to allocate a monthly advertising budget of $8,000.00 between newspaper advertising and radio advertising. Management decided that at least 25% of the budget must be spent on each type of media and that the amount of money spent on local newspaper advertising must be at least twice the amount spent on radio advertising. A marketing consultant developed an index that measures audience exposure per dollar of advertising on a scale from 0 to 100, with higher values implying greater audience exposure. If the value of the index for local newspaper advertising is 60 and the value of the index for spot radio advertising is 70, how should the restaurant allocate its advertising budget to maximize the value of total audience exposure? (a) Formulate a linear programming model that can be used to determine how the restaurant should allocate its advertising budget in order to maximize the value of total audience exposure. (Assume N is the amount spent on newspaper advertising and R is the amount spent on radio advertising.) Max s.t. budget minimum newspaper spending minimum radio spending comparison radio and newspaper spending N, R ≥ 0 (b) Develop a spreadsheet model and solve the problem using Excel Solver. (Round the Newspaper Dollars Allocated and the Radio Dollars Allocated to the nearest cent. Round the Total Exposure Index to the nearest integer.) Newspaper Dollars Allocated $ Radio Dollars Allocated $ Total Exposure Index Need Help? Read It Submit Answer
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