Q: Ignore the setting of Q3 and consider the original problem formulation. One of the senior managers at Hudson Readers believes that the constraint on the net sales increase for the enhanced version severely limits company’s ability to generate the total net sales increase. Suppose that this constraint is ignored, while all other constraints in the original problem formulation remain unchanged. Which of the following statements describes the optimal advertising spending plan in the absence of this constraint?
or
Q: Consider the original issue formulation and disregard the Q3 setting. According to one of Hudson Readers’ top managers, the company’s capacity to produce a net sales rise in a whole is significantly hampered by the upgraded version’s net sales increase limitation. Assume that this requirement is disregarded and that the original issue formulation’s other constraints stay the same. Without this restriction, which of the following assertions best characterizes the advertising budget?
- The total optimal amount of advertising spending in China is 0
- The total optimal amount of advertising spending in India is 0
- The total optimal amount of advertising spending on the standard product is 0
- The total optimal amount of advertising spending on the enhanced product is 0
Explanation: The total optimal amount of advertising spending on the standard product is 0. This is because the enhanced version would become the focus for maximizing sales, leading to a shift away from the standard product.
