# 0 total exposure 2160 total new customers reached

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Total 78 \$279,00 0 Total Exposure : 2160 Total New Customers Reached : 127,100 2. The shadow price for the budget constraint is 0.0055. So, if an additional \$10,000 were added to the advertising budget, total exposure will increase by 55 points. 3. The recommended solution is not very sensitive to the exposure rating coefficients. For example, there is a huge difference in the new customers reached and number of ads suggested in the part 1 and 4 schedules, but the total exposure does not change as drastically. 4. Advertising Schedule: Media Number of Ads Budget Television 14 \$140,00 0 Radio 28 \$84,000 Newspape r 55 \$55,000 Total 97 \$279,00 0 Total Exposure: 2130 Total New Customers Reached: 139,600 5. I would recommend using the advertising schedule from part 4 instead of the original schedule because more new customers would be reached and the exposure would only decrease by 30 points.
Appendix Please see the attached Excel documents. Initial Exposure After Initial Exposure Advertisin g Media Exposure Rating per Ad New Customers per Ad Cost per Ad Advertisin g Media Exposure Rating per Ad New Customers per Ad Cost per Ad Television 90 4000 \$10,00 0 Television 55 1500 \$10,00 0 Radio 25 2000 \$3,000 Radio 20 1200 \$3,000 Newspape r 10 1000 \$1,000 Newspape r 5 800 \$1,000 Exposure rating and new customers reached decreases after 10 TV ads , 15 radio ads , and 20 newspaper ads . New Customers Reached > 100,000 Advertising Budget = \$279,000; (Television ads > \$140,000; Radio ads < \$99,000; Newspaper ads > \$30,000) Decision Variables: