Question

The Unilever Company plans to allocate some or all of its monthly advertising budget of GH¢82,000 in the Mankato area. It can purchase local radio spots at GH¢120 per spot, local TV spots at GH¢600 per spot, and local newspaper advertising at GH¢220 per insertion.

The company's policy requirements specify that the company must spend at least GH¢40,000 on TV and allow monthly newspaper expenditures up to GH¢60,000.

      

        

      

   

 

 

Answer 1

r = number of spots on radio

t = number of spots on TV

n = number of spots on newspaper

Maximize

Z = 40r + 180t +320n

subject to

120r + 600t + 220n ≤ 82000

600t ≥ 40000

220n ≤ 60000

r,t,n ≥ 0

r = 0

t = 66.66

n = 190.90

Z = 73090.91

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