The Simplex Method
Math 147
Names:
Solve the following problem using the Simplex Method.
A department store chain has up to $20,000 to spend on television advertising for a sale.
All ads will be placed with one television station, where a 30 second ad costs $1,000 on
daytime TV and is viewed by 14,000 people. The same ad costs $2,000 for a prime time
location and is viewed by 24,000 people. A late night spot costs $1,500 and is viewed by
18,000 people. The television station will not accept a total of more than 15 ads in all
three time periods. How many ads should be placed in each time period in order to
maximize the number of potential customers who will see the ads? How many potential
customers will see the ads? (Ignore repeated viewings of the ad by the same person.)