Based on the equation Y = 10,404 -1.2X, Sales(Y) is in Units of $1000.00 and Advertising(X) is in Units of $100. What are Sales when $3,918.00 is spent on advertising?

Answer 1

To find the sales when $3,918.00 is spent on advertising, we'll first convert the advertising expenditure into the appropriate units. Advertising \(X\) is measured in units of $100.

1. Convert the advertising expenditure into the appropriate unit: \[ X = \frac{3918.00}{100} = 39.18 \]

2. Now we can substitute \(X\) into the equation to find \(Y\): \[ Y = 10,404 - 1.2X \] \[ Y = 10,404 - 1.2(39.18) \]

3. Calculate \(1.2 \times 39.18\): \[ 1.2 \times 39.18 = 47.016 \]

4. Substitute this value back into the equation for \(Y\): \[ Y = 10,404 - 47.016 \] \[ Y = 10,356.984 \]

5. Since \(Y\) is in units of $1,000, we interpret this value: \[ \text{Sales} = 10,356.984 \times 1000 = $10,356,984.00 \]

Therefore, when $3,918.00 is spent on advertising, the sales are approximately $10,357,000 (rounded to the nearest dollar).