Ace Advertising Has Won The Contract To Promote The Macaw Heads Upcoming Concert

Ace Advertising has won the contract to promote the Macaw Heads upcoming concert in Aldrich. They have identified four relevant advertising outlets and using Nielson and Arbitron data gathered the information in Table 1 about each advertising outlet. The advertising budget is limited to $50,000. At least 500 thousand of the effective audience contact should be individuals over the age of 40. For TV ads, the effective audience contact (and thus the percent of audience over 40) drops by 20% after the 20th ad (include a decision variable for both maximum and reduced effectiveness TV ad). The newspaper has agreed to cut the cost of an ad by 50% for every additional ad purchased after the fifth ad. Thus the first five ads cost the regular price. After the 6th regular price ad is purchased, the first reduced ad can be purchased. After the seventh regular price ad is purchased, the second reduced ad can be purchased (include a decision variable for the number of regular ads purchased and the number of reduced cost ads purchase and be sure to require that the number of regular cost ads is always five more than the reduced cost ads). At most, only 30 newspaper ads are possible. For every 106.7 radio ad, there must be at least two 103.1 Radio ads. Formulate the LP model to determine the number of ads in each outlet and maximize the effective audience contact.

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