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IRISSAK [1]
3 years ago
7

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=46.41+0.45(Advertising Expenditures) If the company has a target sales volume of $200,000, how much should the sales manager allocate for advertising in the budget? Round your answer to the nearest dollar.
Mathematics
1 answer:
skelet666 [1.2K]3 years ago
5 0

Answer:

\$444341 \text{to the nearest dollar}

Step-by-step explanation:

According to the sales manager, sales volume and advertising expenditures are modeled according to the linear equation.

Estimated Sales Volume=46.41+0.45(Advertising Expenditures)

If the company has target sales volume of $200,000, we are to determine its proposed advertising expenditure.

Estimated Sales Volume=46.41+0.45(Advertising Expenditures)

200000=46.41+0.45(Advertising Expenditures)

200000-46.41=0.45(Advertising Expenditures)

Advertising Expenditures

=\dfrac{200000-46.41}{0.45}\\=444341.31\\\approx \$444341 \text{to the nearest dollar}

The sales Manager should allocate $444,341 for advertising in the budget.

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