1. mid-atlantic auto is evaluating their marketing plan for the sedans, suvs, and trucks they produce. a tv ad featuring this suv has been developed. the company estimates each showing of this commercial will cost $500,000 and increase sales of suvs by 3% but reduce sales of trucks by 1% and have no effect of the sales of sedans. the company also has a print ad campaign developed that it can run in various nationally distributed magazines at a cost of $750,000 per title. it is estimated that each magazine title the ad runs in will increase the sales of sedans, suvs, and trucks by 2%, 1%, and 4%, respectively. the company desires to increase sales of sedans, suvs, and trucks by at least 3%, 14%, and 4%, respectively, in the least costly manner. a. formulate an lp model for this problem. b. implement your model in a spreadsheet, and solve it. what it the optimal solution?

a.

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711. 

after cutting wages and benefits in order to increase profit .

apex~