Laura is very excited to see that if there appears to have a relationship between advertising expense
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Laura is very excited to see that if there appears to have a relationship between advertising expense and sales. Use the regression equation to find the estimated sales if the company spends $40,000 on advertising. Is it reasonable?
10. Laura brings the figure she found in problem 9 to her supervisor and suggests the company to spend $40,000 in advertising the following month. One month later, Laura was surprised to find out that the sales did not reach the expected amount. The sales improved, but it was only $480,000. Can you explain why it happened?
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0132109178
14th Edition
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
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