Answered

Connect with a community that values knowledge and expertise on IDNLearn.com. Find reliable solutions to your questions quickly and accurately with help from our dedicated community of experts.

11. Monthly sales revenue, S (in $), and monthly advertising expenditure, A (in $), are modelled by the linear relation, S = 9000 + 12A.
(a) If the firm does not spend any money on advertising, what is the expected sales revenue that month?
(b) If the firm spends $800 on advertising one month, what is the expected sales revenue?
(c) How much does the firm need to spend on advertising to achieve monthly sales revenue of $15 000?
(d) If the firm increases monthly expenditure on advertising by $1, what is the corres- ponding increase in sales revenue?

Help me!

Sagot :

Adioabiolaidn

We are required to find the expected sales revenue of the month

The answers are given below

S = $9000

S = $18,600

A = $500

S = 15,012

Given:

S = 9000 + 12A

Where,

S = Monthly sales revenue

A = monthly advertising expenditure

a. If the firm does not spend on advertisement

S = 9000 + 12A

Where,

A = 0

S = 9000 + 12A

S = 9000 + 12(0)

S = $9000

b. If the firm spends $800 on advertising one month

S = 9000 + 12A

= 9000 + 12(800)

= 9000 + 9600

= 18,600

S = $18,600

c. S = 9000 + 12A

When

S = $15,000

15,000 = 9000 + 12A

15000 - 9000 = 12A

6000 = 12A

A = 6000/12

= 500

A = $500

d. If the firm increases monthly expenditure on advertising by $1

If A increases to $501

S = 9000 + 12A

= 9000 + 12(501)

= 9000 + 6,012

= 15,012

S increases to $15,012

Read more:

https://brainly.com/question/1700984

Thank you for contributing to our discussion. Don't forget to check back for new answers. Keep asking, answering, and sharing useful information. Thank you for choosing IDNLearn.com. We’re here to provide reliable answers, so please visit us again for more solutions.