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    What Is The Highest Revenue That Could Be Generated?

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    Wassup Wasabi
    1. A community group produces bracelets and baskets from indigenous materials to generate revenue. Bracelets sell for PHP50 and take 5 hours to dry and 1 hour to make, while baskets sell for PHP300 and take 5 hours to dry and 30 hours to make. The maximum drying and assembly times are 150 hours and 210 hours respectively. The highest potential revenue is PHP3,051.725. 2. A marketing group wants to run ad campaigns on Google Ads and Facebook targeting Tacloban City residents. Google Ads offers 40,000 impressions for PHP4 each while Facebook offers 28,000 reaches for PHP80 per day. With a PHP4,200 weekly budget and PHP10,500 for

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    What Is The Highest Revenue That Could Be Generated?

    Uploaded by

    Wassup Wasabi
    121 views3 pages
    1. A community group produces bracelets and baskets from indigenous materials to generate revenue. Bracelets sell for PHP50 and take 5 hours to dry and 1 hour to make, while baskets sell for PHP300 and take 5 hours to dry and 30 hours to make. The maximum drying and assembly times are 150 hours and 210 hours respectively. The highest potential revenue is PHP3,051.725. 2. A marketing group wants to run ad campaigns on Google Ads and Facebook targeting Tacloban City residents. Google Ads offers 40,000 impressions for PHP4 each while Facebook offers 28,000 reaches for PHP80 per day. With a PHP4,200 weekly budget and PHP10,500 for

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    ER-7

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    1. A community group produces bracelets and baskets from indigenous materials to generate revenue. Bracelets sell for PHP50 and take 5 hours to dry and 1 hour to make, while baskets sell for PHP300 and take 5 hours to dry and 30 hours to make. The maximum drying and assembly times are 150 hours and 210 hours respectively. The highest potential revenue is PHP3,051.725. 2. A marketing group wants to run ad campaigns on Google Ads and Facebook targeting Tacloban City residents. Google Ads offers 40,000 impressions for PHP4 each while Facebook offers 28,000 reaches for PHP80 per day. With a PHP4,200 weekly budget and PHP10,500 for

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    121 views3 pages

    What Is The Highest Revenue That Could Be Generated?

    Uploaded by

    Wassup Wasabi
    1. A community group produces bracelets and baskets from indigenous materials to generate revenue. Bracelets sell for PHP50 and take 5 hours to dry and 1 hour to make, while baskets sell for PHP300 and take 5 hours to dry and 30 hours to make. The maximum drying and assembly times are 150 hours and 210 hours respectively. The highest potential revenue is PHP3,051.725. 2. A marketing group wants to run ad campaigns on Google Ads and Facebook targeting Tacloban City residents. Google Ads offers 40,000 impressions for PHP4 each while Facebook offers 28,000 reaches for PHP80 per day. With a PHP4,200 weekly budget and PHP10,500 for

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    1. The MTCB is one of the communities that CBC assists.

    Right now, they are focusing on


    producing souvenir items made of indigenous materials. Using nito, they are able to create two
    kinds of products: (1) bracelet and (2) basket. The bracelet sells for PhP50.00 and requires five
    hours to dry and one hour to make. The basket sells for PhP300.00 and requires five hours to dry
    and 30 hours to create. The total drying time cannot exceed 150 hours. Total assembly time
    cannot exceed 210 hours so they have time to complete their other sources of livelihood.

    What is the highest revenue that could be generated?

    Let c = the number of bracelet made, and k = the number of basket made.
    The total profit, P, is P = 50c + 300k

    Objective function:
    P = 50c + 300k

    Constraints:
    5c + 5k ≤ 150
    c + 30k ≤ 210
    c ≥ 0, k ≥ 0

    Graphing the constraints, we have:

    The shaded area is the feasible region.

    Vertices: (0,0) (0,7) (30,0) (23.793, 6.207)


    (c,k)

    P (0,0) = 50(0) + 300(0) = 0


    P (0,7) = 50(0) + 300(7) = 2100
    P (30,0) = 50(30) + 300(0) = 1500
    P (23.7931, 6.2069) = 50(23.793) + 300(6.207) = 3051.725

    The highest revenue that could be generated is 3,051.725.

    2. Relying on online means, a marketing group wants to create a mix of campaigns using Google
    Ads and Facebook. Using the same campaign content, targeting the residents of Tacloban City,
    Google Ads has a potential of 40,000 impressions costing PhP4.00 per view (with 40 views per
    day); whereas Facebook offers a potential reach of 28,000 costing PhP80.00 per day. The budget
    is only PhP 4,200.00 online advertising cost per week. The cost for hiring a personnel to handle
    the Google Ads platform is PhP360.00 per day and for Facebook Ads Platform is PhP 240.00 per
    day. The budget for marketing personnel is only PhP10,500.00 per week.

    The group wants to determine the best combination of ads that will yield the highest reach.

    Let g = the number of days that Google Ads campaign will run, and f = the number of days that
    Facebook advertising campaign will run

    Objective function:
    Z = 40000g + 28000f

    Constraints:
    160g + 80f ≤ 4200
    360g + 240f ≤ 10500
    g ≥ 0, f ≥ 0

    Graphing the constraints, we have:

    The shaded area is the feasible region.

    Vertices: (0,0) (0, 43.75) (26.25, 0) (17.5, 17.5)


    (g,f)
    P (0,0) = 40000(0) + 28000(0) = 0
    P (0, 43.75) = 40000(0) + 28000(43.75) = 1225000
    P (26.25, 0) = 40000(26.25) + 28000(0) = 1050000
    P (17.5, 17.5) = 40000(17.5) + 28000(17.5) = 1190000

    Given the constraints, the best combination of ads that will yield the highest reach is having
    Google Ads campaign run for 0 days (not investing in Google Ads for the campaign) and
    Facebook advertising campaign run for 43.75 days per two months.

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