The manager of a firm estimates that the sales of her firm, Ask an Expert

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The manager of a firm estimates that the sales of her firm are related to radio and newspaper advertising in the following way:

S = 24,000 + 2,000AT, where

S = the number of units sold

A = the number of quarter-page newspapers advertisements, and

T = the number of 15-second TV spots

a) If the newspaper ads cost $400 per quarter-page ad and the TV ads cost $1200 per 15-second spot, find the combination of newspaper and television ads that maximizes sales when the advertising budget is $24,000.

b) Also compute the optimal level of sales.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92028170

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