Table 8-2
Diamond Jeweler's is trying to determine how to advertise in order to maximize their exposure.Their weekly advertising budget is $10,000.They are considering three possible media: tv,newspaper,and radio.Information regarding cost and exposure is given in the table below: Let T = the # of tv ads,N = the # of newspaper ads,and R = the # of radio ads
-According to Table 8-2,what is the advertising budget constraint?
A)10T + 7N + 20R ≤ 10,000
B)10T + 7N + 20R ≥ 10,000
C)800T + 1000N + 400R ≤ 10,000
D)800T + 1000N + 400R ≥ 10,000
E)7000T + 8500N + 3000R ≤ 10,000

Question

Table 8-2
Diamond Jeweler's is trying to determine how to advertise in order to maximize their exposure.Their weekly advertising budget is $10,000.They are considering three possible media: tv,newspaper,and radio.Information regarding cost and exposure is given in the table below:  Let T = the # of tv ads,N = the # of newspaper ads,and R = the # of radio ads
-According to Table 8-2,what is the advertising budget constraint?
A)10T + 7N + 20R ≤ 10,000 
B)10T + 7N + 20R ≥ 10,000 
C)800T + 1000N + 400R ≤ 10,000 
D)800T + 1000N + 400R ≥ 10,000 
E)7000T + 8500N + 3000R ≤ 10,000

Quizplus · Accepted Answer

The advertising budget constraint is the total cost of advertising across all three media, which cannot exceed the budget of $10,000. Using the given information from the table, the budget constraint can be expressed as:
800T + 1000N + 400R ≤ 10,000
To determine the best choice(s), we need to use a linear programming approach. We want to maximize the exposure subject to the budget constraint. Let E = the total exposure, which is given by:
E = 500T + 1000N + 700R
We want to maximize E subject to the budget constraint of 800T + 1000N + 400R ≤ 10,000. Using a linear programming tool or method, we can find that the best choice is to allocate all of the budget to newspaper ads (N = 10), which gives the highest exposure of 10,000. Alternatively, we could allocate some of the budget to TV ads and some to newspaper ads, which would also give an exposure of 10,000. For example, if we allocate $2,000 to TV ads (T = 2) and the remaining $8,000 to newspaper ads (N = 8), we get the same exposure of 10,000. Therefore, the best choices are:
Choice C: Allocate all of the budget to newspaper ads (N = 10)
OR
Allocate $2,000 to TV ads (T = 2) and the remaining $8,000 to newspaper ads (N = 8)

Table 8-2 Diamond Jeweler's Is Trying to Determine How to Advertise in Advertise