An Ad Campaign for a New Snack Chip Will Be

question 15

Essay

An ad campaign for a new snack chip will be conducted in a limited geographical area and can use TV time, radio time, and newspaper ads. Information about each medium is shown below. $$\begin{array} { c c c c } \text { Medium } & \text { Cost Per Ad } & \text { \# Reached } & \text { Exposure Quality } \\\hline \text { TV } & 500 & 10000 & 30 \\\text { Radio } & 200 & 3000 & 40 \\\text { Newspaper } & 400 & 5000 & 25\end{array}$$ If the number of TV ads cannot exceed the number of radio ads by more than 4, and if the advertising budget is $10000, develop the model that will maximize the number reached and achieve an exposure quality if at least 1000.

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Definitions:

Realized Gain

The profit made from selling an asset at a higher price than its purchase cost.

Fair Values

the estimated market value of an asset or liability, based on current prices in an open and competitive market.

Temporary Investments

Investments in stocks, bonds, or other securities that a company intends to sell within a short period, typically one year.

Excess Cash

The amount of cash a company possesses that exceeds the minimum level needed to maintain its operations and investment plans.