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Applecore Children Clothing conducted a survey of 53 of their existing customers to determine the top ten sites visited regularly by them. The chart provided with the problem has details of 24 customers that visit one or more of the top ten sites and also has the cost of advertising on these sites. To reach any customer Applecore only has to place an advertisement on one of the sites visited by the customer.
From the chart it can be seen that it costs the least to place an advertisement on site number 10 and 4 of the customers visit this site. The company has to pay $2200 for this. Though the price of advertising on site number 9 is $3000 per week only one of the customers visits this site and they also visit website number 10. The third least expensive website is number 3, 5 customers visit this website and it costs $3500. Next comes website number 6 which is visited by 4 customers and it costs $4500 . This is followed by website number 1 using which the company can reach another 3 customers and spend $5000. By advertising of website number 7, the company can reach another 4 customers and it costs $6000. 3 of the customers do not visit any of the 10 websites and to reach the last customer the company has to use website 4 and pay $5500.
With a budget of $10000 per week, the company should place its advertisement on websites 10 and 1. The total cost is $7700 and it can reach 10 customers.
If $5000 can be spent on promotions, the company should advertise on website number 1 and it can reach 7 customers.
If $10000 can be spent on promotions, the websites 10 and 1 should be used and the company can reach 10 customers.
If $15000 can be used for promotions, the websites 1, 6 and 10 should be used that allow the company to reach 15 customers.
If $20000 is spent on promotions the websites 1, 3, 6 and 10 should be used and the company can reach 20 customers.
If $25000 is spent on promotions the websites 1, 3, 4, 6 and 10 should be used and the company can reach 21 customers.
Increasing the budget from $20000 to $25000 increases the number of customers reached by only 1. It is therefore best for the company to keep a budget of $20000 and use 4 of the websites to place its advertisements.
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