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Q3. A Marketing manager wishes to allocate his annual advertising budget of Rs. 20,000 in two media A & B. The unit cost a message in media A is Rs. 1000 and in media B is Rs. 1,500. Media A is monthly magazine and not more then one insertion is desired in the issue. Al least five message should appear in media B. The expected effective audience for one message in media A is 40,000 and for Media B is 50,000. Formulate it and solve graphically.

June 04, 2012 By: Meliza Category: 1st SEM

Ans: Maximize (Z) = 40,000×1+50,000×2
Subject to constraints
1000×1+1500×2≤20,000, x1≤1, x2≥5
Non Negative Restrictions x1, x2≥0
Z=6,66,667 X1=0, X2=40/3

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