Maximize the number of new customers created by advertising

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Reference no: EM13954214

Formulate on a spreadsheet and solve using solver, Explain formulas used in cells.

Carco has a $150,000 advertising budget. In order to increase automobile sales, the firm is considering advertising in newspapers and on television. The more Carco uses a particular medium, the less effective is each additional ad. Table 26 shows the number of new customers reached by ad. Each newspaper ad costs $1000, and each television ad costs $10,000. At most 30 newspaper ads and at most 15 television ads can be placed. How can Cargo maximize the number of new customers created by advertising?

NO. OF ADS NEW CUSTOMERS

Newspaper 1 – 10 900

11 – 20 600

21 – 30 300

Television 1 – 5 10,000

6 – 10 5,000

11 – 15 2,000

Reference no: EM13954214

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