Question

estimated sales volume =47.81+0.47(Advertising Expenditures)If the company has a target sales volume of $175,000,how much should the sales manager allocate for the advertising in the budget ? round your answer to the nearest dollar

Answer 1

We are given an estimate equation.

Let the estimate sales volume be "s" and advertising expenditure be "a".

The given equation is:

`s=47.81+0.47a`

The company has a target sales of 175,000, which is a value for "s".

To get how much they need to allocate for advertising, we can solve for "a" in the equation and substitute the "s" value with 175,000:

`\begin{gathered} s=47.81+0.47a \\ 47.81+0.47a=s \\ 0.47a=s-47.81 \\ a=(s-47.81)/(0.47) \end{gathered}`

Now we substitute 175,000 into "s":

`a=(175,000-47.81)/(0.47)=(174,952.19)/(0.47)=372,238.7021\ldots\approx372,239`

So, by the equation estimate, the sales manager should allocate $327,239 for advertising.