The advertising director a large retail store in Columbus, Ohio, is considering three advertising media possibilities: (1) ads in the Sunday Columbus dispatch newspaper, (2) ads in a local trade magazine that is distributed free to all houses in the city and northwest suburbs, and (3) ads on Columbus’ WCC-TV station. She wishes to obtain a new customer exposure level of at least 50% within the city and 60% in the northwest suburbs. Each TV ad has a new-customer exposure level of 5% in the city and 3% in the northwest suburbs. The dispatch ads have corresponding exposure levels per ad of 3.5% and 3%, respectively, while the trade magazine has exposure levels per ad of 0.5% and 1%, respectively. The relevant costs are $1,000 per dispatch ad, $300 per trade magazine ad, and $2,000 per TV ad. The advertising policy is that no single media type should consume more than 45% of the total amount spent. Find the advertising strategy that will meet the store’s objective at minimum cost.
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