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Exhibit 7.1 The Following Questions Are Based on the Problem Below

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Exhibit 7.1
The following questions are based on the problem below.
A company wants to advertise on TV and radio. The company wants to produce about 6 TV ads and 12 radio ads. Each TV ad costs $20,000 and is viewed by 10 million people. Radio ads cost $10,000 and are heard by 7 million people. The company wants to reach about 140 million people, and spend about $200,000 for all the ads. The problem has been set up in the following Excel spreadsheet. Exhibit 7.1 The following questions are based on the problem below. A company wants to advertise on TV and radio. The company wants to produce about 6 TV ads and 12 radio ads. Each TV ad costs $20,000 and is viewed by 10 million people. Radio ads cost $10,000 and are heard by 7 million people. The company wants to reach about 140 million people, and spend about $200,000 for all the ads. The problem has been set up in the following Excel spreadsheet.   -Refer to Exhibit 7.1. If the company is very concerned about going over the $200,000 budget, which cell value should change and how should it change? A)  D13, increase B)  D13, decrease C)  D14, increase D)  D14, decrease
-Refer to Exhibit 7.1. If the company is very concerned about going over the $200,000 budget, which cell value should change and how should it change?


A) D13, increase
B) D13, decrease
C) D14, increase
D) D14, decrease

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