09 Jul The Mountain Mist soda
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 $5000 and is expected to increase sales by 300,000 cans. Each magazine ad costs $2,000 and is expected to increase sales by 500,000 cans. A total of $100,000 may be spent on TV and magazine ads; however, Mountain Mist wants to spend on more than $70,000 on TV spots and no more than $50,000 on magazine ads. Mountain Mist earns a profit of $0.05 on each can it sells.
a. Formulate an LP model for this problem.
b. Sketch the feasible region for this model.
c. Find the optimal solution to the problem using level curves.
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