A Firm Is Mulling Over Its Optimal Mix of Print

Essay

A firm is mulling over its optimal mix of print advertising. Magazine ads (M) cost $2,500 each, reach an estimated 20,000 consumers, and generate about $7,500 revenue per ad. Newspaper ads (N) cost $1,500 each, reach an estimated 15,000 consumers, and generate about $6,000 revenue per ad. The advertising budget is $75,000 and management wishes to reach at least 600,000 consumers in total. In addition, the firm wants to have at least twice as many magazine ads as newspaper ads. Formulate the firm's linear programming problem.