The accounting firm of Coopers & Andersen is conducting a benchmarking survey to assess the satisfaction level of their clients versus clients served by competing accounting firms. The clients are divided into four groups: Group 1: Large clients of Coopers & Andersen Group 2: Small clients of Coopers & Andersen Group 3: Large clients of other accounting firms Group 4: Small clients of other accounting firms A total of 4,000 companies are being surveyed either by telephone or via a two-way web cam interview. The costs associated with surveying the different types of companies are summarized in the following table: Survey Costs group Telephone Web Cam 1 $18 $40 2 $14 $35 3 $25 $60 4 $20 $45 Coopers & Andersen wants the survey to carry out the survey in the least costly way that meets the following conditions: • At least 10% but not more than 50% of the total companies surveyed should come from each group. • At least 50% of the companies surveyed should be clients of Coopers & Andersen. • At least 25% of the surveys should be done via web cam. • At least 50% of the large clients of Coopers & Anderson who are surveyed should be done via web cam. • A maximum of 40% of those surveyed may be small companies. • A maximum of 25% of the small companies surveyed should be done via web cam. a. Formulate an LP model for this problem. b. Create a spreadsheet model for this problem
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