The marketing manager for Mountain Mist soda needs to decide how many TV spots and magazine...

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 $6000 and is expected to increase sales by 400,000 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 of $1.80 on each case of soda that it sells. Set up an Excel sheet for this problem showing the information, variables, objective (hint, you’re maximizing something) and constraints. You do not have to solve it.

Expert Solution

Below is the Excel setup for solving this linear programming problem as shown in Excel screenshot as given,

Now setup Solve with decision variables, constraints and objective function as shown below.

(Data -> Solver)

Below is the optimal solution:

	Number of Ads
TV	0
Magazine	40

Maximum profit increase is $36,000,000.

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keosha answered 1 month ago

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