The Ross-Simons Company Has a Monthly Advertising Budget of $20,000

question 169

Multiple Choice

The Ross-Simons Company has a monthly advertising budget of $20,000. Their marketing department estimates that if they spend x dollars on newspaper advertising and y dollars on television advertising, then the monthly sales will be given by ​ ​
Dollars. Determine how much money Ross-Simons should spend on newspaper ads and on television ads each month to maximize its monthly sales.
​

• A) $15,000 on newspaper advertisements and $5,000 on television advertisements
• B) $13,000 on newspaper advertisements and $3,000 on television advertisements
• C) $18,000 on newspaper advertisements and $8,000 on television advertisements
• D) $16,000 on newspaper advertisements and $6,000 on television advertisements

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Definitions:

Factory Labor Used

The total hours worked or costs incurred for labor directly involved in the production process of a manufacturing facility.

Factory Labor Costs

Expenses associated with employing workers in a manufacturing facility, including wages, benefits, and other related costs.

Pension Costs

Expenses related to retirement plans funded by an employer for the benefit of employees.

Vacation Pay

Compensation that employers must pay employees for their time off work, as determined by company policy or legal requirements.