Question

A company finds that there is a linear relationship between the amount of money that it spends on advertising and the number of units it sells. If it spends no money on advertising, it sells units. For each additional spent, an additional units are sold. (a) If is the amount of money that the company spends on advertising, find a formula for , the number of units sold as a function of .

Answer 1

y = 0.01x + 300

Step-by-step explanation:

There are some missing information in the question that are shown below:

If it spends no money on advertising, it sells 300 units

For each $1,500 additional spent, an additional 15 units are sold.

Given that

Number of units sold in case of no money spending = 300 units

Additional money spent = $1,500

Additional units sold = 15 units

By considering the above information, the formula is presented below:

y = 0.01x + 300

where,

0.01X is come from

= (Number of units sold in case of no money spending + Additional units sold - Number of units sold in case of no money spending) ÷ (Additional money spent)

= (300 units + 15 units - 300 units) ÷ ($1,500)

= 0.01X