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A Company Has Budgeted a Maximum of $1,200,000 for National

Question 61

Multiple Choice

A company has budgeted a maximum of $1,200,000 for national advertising an allergy medication.Each minute of television time costs $120,000 and each one-page newspaper ad costs $60,000.Each television ad is expected to be viewed by 24 million viewers, and each newspaper ad is expected to be seen by 7 million readers.What is the optimal amount that should be spent on advertising for each type ad?


A) $1,200,000 on television time and $0 on newspaper ads
B) $1,000,000 on television time and $200,000 on newspaper ads
C) $500,000 on television time and $700,000 on newspaper ads
D) $600,000 on television time and $600,000 on newspaper ads
E) $900,000 on television time and $300,000 on newspaper ads

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