Based on the equation Y=4.29+143.3X, sales(Y) is in units of $10,000 and advertising(X) is in units of $100. What are sales when $4,497 is spent on advertising?

1 answer

To find the sales (Y) when $4,497 is spent on advertising, we first need to convert the advertising expenditure into the units specified in the equation, which is in units of $100.

  1. Convert $4,497 to units of $100: \[ X = \frac{4497}{100} = 44.97 \]

  2. Substitute X into the equation: \[ Y = 4.29 + 143.3 \cdot X \] \[ Y = 4.29 + 143.3 \cdot 44.97 \]

  3. Calculate \(143.3 \cdot 44.97\): \[ 143.3 \cdot 44.97 \approx 6435.721 \]

  4. Now substitute that back into the equation for Y: \[ Y \approx 4.29 + 6435.721 \approx 6439.011 \]

  5. Thus, the sales in units of $10,000 is approximately: \[ Y \approx 6439.011 \]

To express this in actual dollars, we multiply by 10,000: \[ \text{Sales} \approx 6439.011 \times 10,000 \approx 64,390,110 \]

Therefore, when $4,497 is spent on advertising, the sales are approximately $64,390,110.