A cereal company finds that the number of people who will buy one of its products in the first month that it is introduced is linearly related to the amount of money it spends on advertising. If it spends $40,000 on advertising then 100,000 boxes of cereal will be sold, and if it spends $60,00 then 200,00 boxes will be sold.

Question

a. Write and equation describing the relation between the amount A spent on advertising and the number x of boxes sold.

b. How much advertising is needed to sell 300.000 boxes of cereal?
c. Interpret slope

Answer 1

x = number sold
y = advertising cost
Do the whole problem in thousands, then multiply by 1000 at the end.
Points on graph
(X1,Y1) = (100, 40)
(X2,Y2) = (200, 60)

slope = (60-40)/(200-100)= (y - 40)/(x-100)

Answer 2

15000