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A Company Has Budgeted a Maximum of $1,200,000 for National

Question 16

Multiple Choice

A company has budgeted a maximum of $1,200,000 for national advertising an allergy medication. Each minute of television time costs $100,000 and each one-page newspaper ad costs $40,000. Each television ad is expected to be viewed by 43 million viewers, and each newspaper ad is expected to be seen by 18 million readers. What is the optimal amount that should be spent on advertising for each type ad?


A) $0 on television time and $1,200,000 on newspaper ads
B) $400,000 on television time and $800,000 on newspaper ads
C) $900,000 on television time and $300,000 on newspaper ads
D) $1,100,000 on television time and $100,000 on newspaper ads
E) $200,000 on television time and $1,000,000 on newspaper ads

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