Exit Strategies It’s difficult to believe that after going through everything it takes to get a small business up and off the ground, often times the next steps are to….
Formulate an IP to maximize the number of exposures that Dorian can obtain with limited advertising funds.
Dorian Auto has a $20,000 advertising budget. Dorian can purchase full-page ads in two magazines: Inside Jocks (IJ) and Family Square (FS). An exposure occurs when a person reads a Dorian Auto ad for the first time. The number of exposures generated by each ad in IJ is as follows: ads 1-6, 10,000 exposures; ads 7–10, 3,000 exposures; ads 11-15, 2,500 exposures; ads 16+, 0 exposures. For example, 8 ads in IJ would generate 6(10,000) + 2(3,000) = 66,000 exposures. The number of exposures generated by each ad in FS is as follows: ads 1-4, 8,000 exposures; ads 5-12, 6,000 exposures; ads 13-15, 2,000 exposures; ads 16+, 0 exposures. Thus, 13 ads in FS would generate 4(8,000) + 8(6,000) + 1(2,000) = 82,000 exposures. Each full-page ad in either magazine costs $1,000. Assume there is no overlap in the readership of the two magazines. Formulate an IP to maximize the number of exposures that Dorian can obtain with limited advertising funds. Solving the problem by LINDO or xl-solver? Discuss your answer?