excel solver 1. Media Planning. GreenLawns provides a lawn fertilizing and weed control service. The companyis adding a special aeration treatment as a low-cost extra service option that it hopes will helpattract new customers. Management is planning to promote this new service in two media: radioand direct-mail advertising. A media budget of $3,000 is available for this promotional campaign.Based on past experience in promoting its other services, GreenLawns has obtained the followingestimate of the relationship between sales and the amount spent on promotion in these two media:S-2R²10M² - 8RM +18R+ 34M whereS = total sales in thousands of dollarsR = thousands of dollars spent on radio advertisingM =thousands of dollars spent on direct-mail advertisingGreenLawns would like to develop a promotional strategy that will lead to maximum sales subjectto the restriction provided by the media budget.a. What is the value of sales if $2,000 is spent on radio advertising and $1,000 is spent on direct-mail advertising?b. Formulate an optimization problem that can be solved to maximize sales subject to the mediabudget of spending no more than $3,000 on total advertising.c. Determine the optimal amount to spend on radio and direct-mail advertising. How much insales will be generated?

Given Total sales function S=-2R2-10M2-8RM+18R+34M ........(1) S is the total sales (in…

1. Media Planning. GreenLawns provides a lawn fertilizing and weed control service. The company is adding a special aeration treatment as a low-cost extra service option that it hopes will help attract new customers. Management is planning to promote this new service in two media: radio and direct-mail advertising. A media budget of $3,000 is available for this promotional campaign. Based on past experience in promoting its other services, GreenLawns has obtained the following estimate of the relationship between sales and the amount spent on promotion in these two media: S-2R²10M² - 8RM +18R+ 34M

1. Media Planning. GreenLawns provides a lawn fertilizing and weed control service. The company is adding a special aeration treatment as a low-cost extra service option that it hopes will help attract new customers. Management is planning to promote this new service in two media: radio and direct-mail advertising. A media budget of $3,000 is available for this promotional campaign. Based on past experience in promoting its other services, GreenLawns has obtained the following estimate of the relationship between sales and the amount spent on promotion in these two media: S-2R²10M² - 8RM +18R+ 34M

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter17: Making Decisions With Uncertainty

Section: Chapter Questions

Problem 6MC

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