Exhibit 7.1 The Following Questions Are Based on the Problem Below

question 7

Multiple Choice

Exhibit 7.1
The following questions are based on the problem below.
A company wants to advertise on TV and radio. The company wants to produce about 6 TV ads and 12 radio ads. Each TV ad costs $20,000 and is viewed by 10 million people. Radio ads cost $10,000 and are heard by 7 million people. The company wants to reach about 140 million people, and spend about $200,000 for all the ads. The problem has been set up in the following Excel spreadsheet.
-Refer to Exhibit 7.1. What formula goes in cell D6?

• A) =SUMPRODUCT(B2:B3,B6:B7)
• B) =B2*C2+B6*C6
• C) =SUMPRODUCT(B2:C2,B10:C10)
• D) =SUMPRODUCT(B2:C2,B6:C6)

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Definitions:

Outsourcing

The practice of hiring third-party vendors to perform tasks, handle operations or provide services that are either difficult to manage or are outside the business's core competencies.

Contracting Out

The process of hiring external service providers to perform tasks, handle operations or provide services that are either difficult to manage or are outside the company's expertise.

Human Capital Shortages

A situation where there is a lack of skilled individuals available in the labor market to meet the demands of employers.

Developing Employees Internally

The process of investing in the growth and development of an organization's current employees to prepare them for future roles and leadership positions.