If the company wants to spend at least 500 on each medium


A car dealership wants to determine how to allocate its $20,000 advertising budget. They have estimated the expected profit from each dollar spent in 4 different advertising media as show:
Medium Expected profit
Newspaper 100X0.7
Radio 125X0.65
TV 180X0.6
Mail 250X0.5

If the company wants to spend at least $500 on each medium, how should it allocate its advertising budget in order to maximize profit (note: the variable exponents make this a non-linear problem)?

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Operation Management: If the company wants to spend at least 500 on each medium
Reference No:- TGS0815596

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