The financial manager at the LOL shop is checking to see if there is any relationship between online advertising and sales revenues at the shop. She ob- tains the following data for the past 10 months: Month: Revenues: Advertising Costs: March $51.000 $1.500 April $72.000 $3.500 May $56.000 $1.000 June $64.000 $4.000 July $57.000 $ 500 August $64.000 $1.500 September $43.000 $1.000 October $82.000 $4.500 November $56.000 $2.000 December $61.000 $2.000 Required: 1. Use the high-low method to compute the function relating advertising costs and revenues 2. Using the high-low equation, what is the increase in revenues for each $ 1 000 spent on advertising within the relevant range?

The financial manager at the LOL shop is checking to see if there is any relationship between online advertising and sales revenues at the shop. She ob- tains the following data for the past 10...

The financial manager at the LOL shop is checking to see if there is any
relationship between online advertising and sales revenues at the shop. She ob-
tains the following data for the past 10 months:

Month:	Revenues:	Advertising Costs:
March	$51.000	$1.500
April	$72.000	$3.500
May	$56.000	$1.000
June	$64.000	$4.000
July	$57.000	$ 500
August	$64.000	$1.500
September	$43.000	$1.000
October	$82.000	$4.500
November	$56.000	$2.000
December	$61.000	$2.000


Required:

1. Use the high-low method to compute the function relating advertising costs and revenues


2. Using the high-low equation, what is the increase in revenues for each $ 1 000 spent on
advertising within the relevant range?

Jun 08, 2022