Business, 22.12.2021 01:00 reesewaggoner8

A new Italian restaurant called the Olive Grove is opening in a number of locations in the Memphis area. The marketing manager for these stores has a budget of $150,000 to use in advertising and promotions for the new stores. The manager can run magazine ads at a cost of $2,000 each that result in 250,000 exposures each. TV ads result in approximately 1,200,000 exposures each but cost $12,000 each. The manager wants to run at least 5 TV ads and 10 magazine ads, while maximizing the number of exposures generated by the advertising campaign. But the manager also wants to spend no more than $120,000 on magazine and TV advertising so that the remaining $30,000 could be used for other promotional purposes. However, the manager would spend more than $120,000 on advertising if it resulted in a substantial increase in advertising coverage. a. Formulate a GP model for this problem assuming the marketing manager has the following goals:
Goal 1: Exposures should be maximized.
Goal 2: No more than $120,000 should be spent on advertising.
(Note that you will have to determine an appropriate target value for the first goal.) Assume the marketing manager wants to minimize the maximum percentage deviation from either goal.
b. Implement your model in a spreadsheet and solve it.
c. What is the solution you obtain?
d. What changes do you make to your model if the manager wants to spend less on advertising than your solution suggests?

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 21:00

During the first month of operations, martinson services, inc., completed the following transactions: jan 2 martinson services received $65,000 cash and issued common stock to the stockholders. 3 purchased supplies, $1,000, and equipment, $12,000, on account. 4 performed services for a customer and received cash, $5,500. 7 paid cash to acquire land, $39,000. 11 performed services for a customer and billed the customer, $4,100. martinson expects to collect within one month 16 paid for the equipment purchased january 3 on account. 17 paid for newspaper advertising, $600. 18 received partial payment from customer on account, $2,000. 22 paid the water and electricity bills, $430. 29 received $2,600 cash for servicing the heating unit of a customer. 31 paid employee salary, $2,900. 31 declared and paid dividends of $1,800. requirements 1. record each transaction in the journal. key each transaction by date. explanations are not required. 2. post the transactions to the t-accounts, using transaction dates as posting references. label the ending balance of each account bal, as shown in the chapter. 3. prepare the trial balance of martinson services, inc., at january 31 of the current year. 4. mark martinson, the manager, asks you how much in total resources the business has to work with, how much it owes, and whether january was profitable (and by how much)?

Answers: 1

Answer

Business, 22.06.2019 07:30

Which of the following is an example of an unsought good? a. cameron purchases a new bike. b. jordan buys paper towels. c. taylor buys cupcakes from her favorite bakery. d. riley buys new windshield wipers for her car.

Answers: 3

Answer

Business, 22.06.2019 17:50

Which of the following is an element of inventory holding costs? a. material handling costs b. investment costs c. housing costs d. pilferage, scrap, and obsolescence e. all of the above are elements of inventory holding costs.

Answers: 1

Answer

Business, 22.06.2019 19:50

Joe pays ann to mow his lawn and ann mows vanna's lawn by mistake. vanna peers out her window and sees ann mowing, yet says nothing to ann about her mistake since vanna needs to have her lawn mowed. when ann approaches vanna for payment, vanna refuses, arguing that she never asked ann to mow her lawn. under these circumstances, ann can recover payment from vanna under:

Answers: 1

Answer

You know the right answer?

A new Italian restaurant called the Olive Grove is opening in a number of locations in the Memphis a...

Questions