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:

Principal Liability

refers to the legal responsibility of a principal (an individual or entity) for the actions of their agents or representatives conducted within the scope of their agency or employment.

Principal/Employer-Agent/Employee Relationship

Refers to the legal bond between an employer who delegates tasks, and an employee who performs these tasks on the employer's behalf.

Negotiable Instrument

A written document signed by a person who makes an unconditional promise to pay a specific sum of money on demand or at a certain time to the holder of the instrument; an acceptable medium for exchanging value from one person to another.

Representative Capacity

Acting on behalf of someone else or a group in a legal or official matter.