A small business opened in 1997 and the sales from 2002 to the current time have been increasing linearly each year. If sales in 2007 totaled $102,600 and sales in 2013 totaled $228,600, use this information to find the equation that you can use to predict the sales in the future. Use the equation to predict the sales of the company in 2009.
A small business opened in 1997 and the sales from 2002 to the current time have been increasing linearly each year. If sales in 2007 totaled $102,600 and sales in 2013 totaled $228,600, use this information to find the equation that you can use to predict the sales in the future. Use the equation to predict the sales of the company in 2009.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
A small business opened in 1997 and the sales from 2002 to the current time have been increasing linearly each year. If sales in 2007 totaled $102,600 and sales in 2013 totaled $228,600, use this information to find the equation that you can use to predict the sales in the future. Use the equation to predict the sales of the company in 2009.
Expert Solution
Step 1
Given that sales have increased linearly each year from 2002 to the present. The graph would be a straight line starting in 2002.
The graph passes through (2007, $102,600) and (2013, $228,600). As a result, the graph's slope is
=
=
=$21000
Thus each year sales are increasing by $21000.
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