Lush Lawns, Inc

question 61

Essay

Lush Lawns, Inc. provides a lawn fertilizer and weed control service. They are adding a special aeration treatment as a low-cost extra service option, which it hopes will help attract new customers. Management is planning to promote this new service in two media: radio and direct-mail advertising. A budget of $2000 is to be used on this promotional campaign over the next quarter. Based on past experience in promoting its other services, Lush Lawns has been able to obtain an estimate of the relationship between sales and the amount spent on promotion in these two media:
s = 2x1² - 10x2² - 2_x1x2 + 18_x1 + 34x2
s.t. x₁ + x₂ = 2
Solve.

---

Definitions:

U.S. Government Securities

Financial instruments issued by the U.S. government to raise funds, including Treasury bonds, bills, and notes, considered low-risk investments.

Money Supply

The summed up worth of financial assets accessible in an economy at a specific moment.

Bank Transaction

Any financial operation carried out within a bank, including deposits, withdrawals, and loans.

Required Reserve Ratio

The fraction of deposits that banks are mandated to keep as reserves by the central bank to ensure liquidity and stability in the financial system.