the Ritz Theater uses the regression analysis method to estimate fixed cost per month and variable costs per ticket sold.

Summary output of regression statistics is provided below:

SUMMARY OUTPUT

Regression Statistics

Multiple R 0.825358

R Square 0.681216

Adj RSquare 0.656695

Stand.Error 39.35892

Observations 15

ANOVA

df SS MS F Sig F

Regression 1 43,034.7 43,034.71 27.780017 0.000151

Residual 13 20,138.6 1,549.12

Total 14 63,173.3

Lower Upper Lower Upper

Coefficients Std Error t Stat P-value 95% 95% 95% 95%

Intercept 2621.21 101.8073 2.626725 0.020917 47.478460 487.3612 47.478460 487.3612

X Variable 35.58 6.1023 5.270675 0.000151 18.980154 45.3467 18.980154 45.3467

The company is considering an advertising campaign that is expected to increase annual sales by 3,000 tickets. Tickets are sold for $120 each. Ignoring the cost of the advertising campaign, what is the expected increase in profit associated with the advertising campaign?

		$253,260
		$250,639
		$260,000
		$265,000
		$270,000