Stat week 1
sbatniji
Backyard Magazine Case
A small magazine publisher wants to determine the best combination of two possible
magazines to print for the month of July. Backyard magazine, which he has published
for years, is a steady seller. The publisher wants to make sure he prints at least 400
copies to meet his demand from the newsstands. Porch is a new venture, and has
received the benefit of a great deal of advance publicity. The publisher is hoping that by
positioning it near Backyard he will pick up some spill over demand from his regular
readers. Also, he is hoping that the advertising campaign will bring in a new type of
reader from a potentially very lucrative market. He wants to print at least 300 copies of
Porch. The cover price for Backyard is $3.50; he is pricing Porch at $4.50, because of
the magazines in this market seem to be able to command a higher price. The publisher
has 50 hours of printing time available for this production run. He also has 30 hours in
the collation department, where the magazines are actually assembled. Backyard requires
2.5 minutes per copy to print and 1.8 minutes per copy to collage. Because of its larger
size, Porch will require 3 minutes to print and 2 minutes to collate. The publisher wants
to maximize his revenues.