Suppose that a company wishes to predict sales volume based on the amount of advertising expenditures....
Suppose that a company wishes to predict sales volume based on
the amount of advertising expenditures. The sales manager thinks
that sales volume and advertising expenditures are modeled
according to the following linear equation. Both sales volume and
advertising expenditures are in thousands of dollars.
Estimated Sales Volume=46.71+0.54(Advertising Expenditures)Estimated Sales Volume=46.71+0.54(Advertising Expenditures)
If the company has a target sales volume of $150,000, how much
should the sales manager allocate for advertising in the budget?
Round your answer to the nearest dollar.
Homework Answers
Estimated Sales Volume=46.71+0.54(Advertising Expenditures)
target sales volume = $150,000 = 150 thousand dollars
the sales manager allocate for advertising in the budget = (150-46.71)/0.54 = 103.29/0.54 = 191.278 thousand dollars = $191278
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