Based on the equation Y = 4.29 + 143.3X, Sales(Y) is in Units of $1000.00 and Advertising(X) is in Units of $100. What are Sales when $4,265.00 is spent on advertising?

1 answer

To find the sales when $4,265.00 is spent on advertising, we first need to convert the advertising expense into the units of \( X \) specified in the equation.

Given:

  • Advertising \( X \) is measured in units of $100.
  • Amount spent on advertising = $4,265.00.

Convert $4,265.00 to the units of \( X \):

\[ X = \frac{4,265.00}{100} = 42.65. \]

Now, we can plug \( X \) into the equation \( Y = 4.29 + 143.3X \):

\[ Y = 4.29 + 143.3(42.65). \]

Now calculate \( 143.3 \times 42.65 \):

\[ 143.3 \times 42.65 \approx 6,105.245. \]

Now add this to 4.29:

\[ Y = 4.29 + 6,105.245 \approx 6,109.535. \]

Thus, Sales \( Y \) is approximately \( 6,109.54 \) (in units of $1000.00). To convert this back to dollars, we multiply by 1,000:

\[ \text{Sales in dollars} = 6,109.54 \times 1,000 = 6,109,540.00. \]

Therefore, when $4,265.00 is spent on advertising, the sales amount is approximately $6,109,540.00.