Fresh Food has recently carried out a survey of the demand for their seasonal fruits. They observed the following   outcomes over the last seven months:   (table attached as a photo)   Regression (Equation)   QSold = 8536.213882 - 835.7223514 Price + 0.592228496 Advertising   A. Estimate sales when the price is $50 and advertising is $100,000, stating any assumption that you need to make.   B. If the firm charges $50 and cost per unit is $30 but increases advertising to $110,000, what conclusions can you derive

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Fresh Food has recently carried out a survey of the demand for their seasonal fruits. They observed the following

 

outcomes over the last seven months:

 

(table attached as a photo)

 

Regression (Equation)

 

QSold = 8536.213882 - 835.7223514 Price + 0.592228496 Advertising

 

A. Estimate sales when the price is $50 and advertising is $100,000, stating any assumption that you need to make.

 

B. If the firm charges $50 and cost per unit is $30 but increases advertising to $110,000, what conclusions can you derive

 

in terms of revenues and profits?

Quantity
Sold
Price
Advertising
$
8500
4700 S
5800 $
7400
6200 $
7300 $
5600 $
2
2,800
200
3
400
$
500
3,200
1,800
2
3
4
900
Transcribed Image Text:Quantity Sold Price Advertising $ 8500 4700 S 5800 $ 7400 6200 $ 7300 $ 5600 $ 2 2,800 200 3 400 $ 500 3,200 1,800 2 3 4 900
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