1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Lunna [17]
3 years ago
8

The marketing manager for Mountain Mist soda needs to decide how many TV spots and magazine ads to run during the next quarter.

• Each TV spot costs $7000 and is expected to increase sales by 420,000 cases. • Each magazine ad costs $2500 and is expected to increase sales by 500,000 cases. • A total of $100,000 may be spent on TV and magazine ads combined. However Mountain mist wants to spend no more than $70,000 on TV spots and no more than $50,000 on magazine ads. Mountain Mist earns a profit margin of $1.80 on each case of soda that it sells, not factoring in marketing costs (just operational profit). Formulate this problem as a linear program to MAXIMIZE NET INCOME (operational profit less advertising costs), where Decision Variables are A=Number of TV spots, B=Number of Magazine Ads. Do not use Excel for this, just algebra.
Business
1 answer:
spayn [35]3 years ago
4 0

Answer: The LP model is given as :

max: 1.180( 420000 A + 500000 B )

subject to : (a.) 7000 A + 2500 B ≤ 100000

(b.) 7000 A ≤ 70000

(c.) 2500 B ≤ 50000

Explanation:

Let us assume;

A be the no. of T.V spots

B be the no. of magazine spots

Given:

(a.) Mountain Mist earns a profit margin of $1.80 on each case of soda that it sells.

(b.) Each TV spot costs $7000 and is expected to increase sales by 420,000 cases.

(c.) Each magazine ad costs $2500 and is expected to increase sales by 500,000 cases.

∴ The objective function of this model will be given as :

max: 1.180( 420000 A + 500000 B )

(d.) A total of $100,000 may be spent on TV and magazine ads combined.

(e.) Mountain mist wants to spend no more than $70,000 on TV spots and no more than $50,000 on magazine ads.

∴ The subjective function will be :

(a.) 7000 A + 2500 B ≤ 100000

(b.) 7000 A ≤ 70000

(c.) 2500 B ≤ 50000

∴ The LP model is given as :

max: 1.180( 420000 A + 500000 B )

subject to : (a.) 7000 A + 2500 B ≤ 100000

(b.) 7000 A ≤ 70000

(c.) 2500 B ≤ 50000

You might be interested in
Sam has recently found out that prices from his manufacturer will be increasing the variable cost by $40 when it used to only be
kvasek [131]

Answer:

New units sale= 2,063 units

Explanation:

Giving the following information:

Sam has recently found out that prices from his manufacturer will be increasing the variable cost by $40 when it used to only be $80. Sam wants to determine if he can keep the selling price the same for customers by decreasing his fixed costs by $15,000. Currently, Sam’s sales are $300,000 at $200 per unit, and his fixed costs are $95,000.

First, we need to calculate the current profit:

Sales in units= 1,500

Contribution margin= (200 - 80)*1,500= 180,000

Fixed costs= 95,000 (-)

Profit= 85,000

To calculate the units required to adapt to the new changes using the following formula:

Break-even point= (fixed costs + profit)/ contribution margin

Break-even point= (80,000 + 85,000)/ (200 - 120)

Break-even point= 2,063 units

7 0
3 years ago
Oliver's company is planning the launch of their hybrid cars. The company has included "never-before-seen product benefits in th
zmey [24]

Oliver's company should use Guerrilla advertising  for the new cars.

<u>Explanation: </u>

Guerrilla advertising has gained prominence over the last 20 years, also defined as ambient advertising.  

For something unusual, it is a common term that typically encourages the user to take part or to engage in a way with it. Place, like time, is critical.  

Creative ideas and creativity are the driving forces behind clandestine advertising and marketing, not a massive budget. Very often with these promotions you will ask for forgiveness, not permission, and will distribute it through word of mouth and social media.

For example, use of promotional campaigns, viral videos, and graffiti stencils.

4 0
3 years ago
How did the pressure change from when it was your turn to be a leader, than when you were just a supporting member? (Take your t
o-na [289]

Answer with Explanation:

The pressure changed a lot when I became a leader. I was expected to supervise my group members and assign them the tasks they have to perform. I gave them a<u><em> sense of direction</em></u>, particularly, towards the group's goal. I was<em> pressured to meet the targets expected from us</em>, and I always put my effort at its best for<u><em> fear of failing or becoming a failure to the group</em></u>. I needed to do things in a <em>calm fashion</em>, so I could inspire my members and be a better role model for them.

When I was just a<em> supporting member,</em> I didn't really mind about which direction my group should take, so the pressure from stress wasn't a big deal. I was very laid back because I just needed to perform what was asked of me by our leader. No one was constantly looking upon me, thus, I didn't feel like I really needed to do my best.

7 0
2 years ago
On september 1, capitol maintenance company contracted to provide monthly maintenance services for the next nine months at a rat
VARVARA [1.3K]

U<span>pon receiving the $21,600 payment of the client, Capitol should recognize a deferred revenue. Deferred revenue </span>is<span> the receipt of compensation when the services are</span> <span>not yet rendered. </span>Since they<span> started on September 1, </span><span>they </span>have rendered four months of service to the client until December 31. The rate of their services is $2,400 per month. Therefore, they have earned $9,600 for the current year. This is the adjusting entry to recognize revenue for the year: 

Deferred Revenue                          9,600

       Service Revenue                                       9,600

<span>               #</span>

3 0
3 years ago
To reduce the amount of time it takes to apply packaging to its finished products, North Star Foods is implementing new equipmen
TiliK225 [7]

Answer:

B. primary activity

Explanation:

Based on the information provided within the question it can be said that in this scenario North Star is addressing a primary activity in the value chain analysis. This is because the five primary activities are inbound logistics, operations, outbound logistics, marketing and sales, and service. So in this scenario, North Star implementing new equipment into its production it is dealing with the operations factor of the primary activities.

8 0
3 years ago
Other questions:
  • Most state and local income are either? progressive or flat
    7·2 answers
  • How does the Open Market Trading Desk conduct its​ operations? A. by sending its buy and sell orders to the U.S. Treasury for ex
    13·1 answer
  • A young entrepreneur recently decided to expand his steel business into a small industrial town in Indiana. Which of the followi
    12·1 answer
  • Fill in the blank label in the above figure. A. Margin B. Cleave C. Bridge D. Gap
    8·2 answers
  • What is an argument in favor of a $15 minimum wage
    13·1 answer
  • If shondra really wants to borrow alicia's shoes but she thinks she may refuse, the idea of the foot-in-the-door technique state
    14·1 answer
  • The concept of permanent current assets reflects the fact that some components of current assets do not shrink to zero even when
    15·1 answer
  • Adonis Corporation issued 10-year, 7% bonds with a par value of $220,000. Interest is paid semiannually. The market rate on the
    11·1 answer
  • Ian, a senior employee, has been assigned a task by his manager, Miranda. He has been asked to monitor the activities of some ne
    9·1 answer
  • You find a zero coupon bond with a par value of $10,000 and 13 years to maturity. If the yield to maturity on this bond is 4.9 p
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!