Product Mix Model using Excel Solver for MBI Corporation
A small retail store is trying to decide on the best use of its advertising budget of $1,000 per month. The store can advertise on local radio for $5 per minute or on local TV for $100 per minute. Each minute of TV advertisement generates 25 times as many sales as each minute of radio advertisement. The store wants to use radio at least twice as much as TV.
– Review the attached document.
– Create a spreadsheet in Excel to represent this situation and then use the Excel add-in Solver to determine the optimal number of minutes of radio and TV advertising the store should use to maximize its sales.
– Return the spreadsheet showing the optimal solution.