The relationship between the advertising budget (x, in $ millions) and sales (y, in $ billions) of a retailer can be expressed by the following regression model. The advertising budget of last year is $2 million, and the advertising budget for this year is expected to decrease by 25%, what would be the forecast for this year’s sales? And what is the percent change in sales compared to last year? y = 1.6 + 0.7x Select one: a. $2.65 billion; decreased about 13.2%. b. $3.35 billion; increased about 10.14%. c. $2.65 billion; decreased about 11.7%. d. $2.75 billion; decreased about 8.3%. e. $3.35 billion; increased about 11.7%
The relationship between the advertising budget (x, in $ millions) and sales (y, in $ billions) of a retailer can be expressed by the following regression model. The advertising budget of last year is $2 million, and the advertising budget for this year is expected to decrease by 25%, what would be the forecast for this year’s sales? And what is the percent change in sales compared to last year? y = 1.6 + 0.7x Select one: a. $2.65 billion; decreased about 13.2%. b. $3.35 billion; increased about 10.14%. c. $2.65 billion; decreased about 11.7%. d. $2.75 billion; decreased about 8.3%. e. $3.35 billion; increased about 11.7%
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 42E: Sales Revenue Approach, Variable Cost Ratio, Contribution Margin Ratio Arberg Companys controller...
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3.
The relationship between the advertising budget (x, in $ millions) and sales (y, in $ billions) of a retailer can be expressed by the following regression model. The advertising budget of last year is $2 million, and the advertising budget for this year is expected to decrease by 25%, what would be the
y = 1.6 + 0.7x
Select one:
a.
$2.65 billion; decreased about 13.2%.
b.
$3.35 billion; increased about 10.14%.
c.
$2.65 billion; decreased about 11.7%.
d.
$2.75 billion; decreased about 8.3%.
e.
$3.35 billion; increased about 11.7%
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