Country P’s Olympic Committee is determining how much sponsorship money it needs to raise in order to cover its expenses in helping athletes train for and travel to next summer’s Olympic Games. There are four possible sources of funding: government grants, income from television rights, team sponsorship, and individual endorsement deals. The Committee’s task is to determine how to maximize funding from the latter three sources, in order to send as many athletes as possible to the Games, while minimizing the drain on government funding. Government funding is provided only when the team is unable to fully fund its activities.
A small number of the highest-profile athletes have secured individual endorsement deals; this money, however, belongs to that athlete alone and any such athletes are removed from the team funding calculations. An individual team is considered underfunded if its funding (not including government sources) covers less than 95% of the team’s expected expenses. Any surplus funding from TV rights or team sponsors reverts to the Olympic Committee and may be reallocated among other teams. The government will then provide funding to match up to 5% of team expenses or the amount needed to reach 100% funding, whichever is smaller.
Country P’s athletes are split into 9 primary teams. For each team, the table lists expected funding from TV rights and team sponsors as well as the percentage of its own expenses that a team is anticipated to be able to cover from TV tights and team sponsors. In addition, the table indicates the maximum possible level of government funding. All monetary amounts are in thousands.
| Team | TV rights | Team Sponsors | Percent funded | Government |
|---|---|---|---|---|
| Basketball | 400 | 250 | 82 | 40 |
| Boxing | 130 | 185 | 68 | 17 |
| Equestrian | 175 | 415 | 68 | 43 |
| Gymnastics | 1,100 | 890 | 115 | — |
| Soccer | 1,800 | 1,300 | 126 | — |
| Swimming | 770 | 500 | 97 | 39 |
| Tennis | 850 | 330 | 96 | 49 |
| Track & Field | 1,000 | 345 | 103 | — |
| Volleyball | 100 | 130 | 86 | 13 |