Problem

Carco has a $150,000 advertising budget. To increase automobile sales, the firm is conside...

Carco has a $150,000 advertising budget. To increase automobile sales, the firm is considering advertising in newspapers and on television. The more Carco uses a particular medium, the less effective is each additional ad. Table 50 shows the number of new customers reached by each ad. Each newspaper ad costs $1,000, and each television ad Costs $10,000. At most, 30 newspaper ads and 15 television ads can be placed. How can Carco maximize the number of new customers created by advertising?

table 50

 

Number of Ads

New Customers

Newspaper

 1–10

    900

 

11–20

    600

 

21–30

    300

Television

1–5

10,000

 

 6–10

  5,000

 

11–15

  2,000

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