The table shows the approximate increase in sales that an additional $100 spent on advertising, at various levels, can be expected to generate. Increase in Revenue Due to an Extra $100 Advertising When Advertising Is Already at a Given Level Expenditures, x (hundred dollars) 25 50 75 100 125 150 175 Revenue Increase, R' (thousand dollars) 4 59 94 107 104 78 33 (a) Find the function of the quadratic model that gives the approximate increase in revenue in thousand dollars per hundred dollars that occurs when an additional $100 is spent on advertising, where x is the amount in hundred dollars already spent on advertising, with data from 25 ≤ x ≤ 175. (Round all numerical values to three decimal places.) R'(X) = thousand dollars per hundred dollars (b) Use the model in part (a) to write the function of the model for the total sales revenue R in thousand dollars when x hundred dollars is spent on advertising. Use the fact that revenue is approximately $876,000 when $5000 is spent on advertising. (Round all numerical values to three decimal places.) R(x) = thousand dollars (c) The managers of the business are considering an increase in advertising expenditures from the current level of $8000 to $13,000. What effect will this decision have on sales revenue? (Round your answer to the nearest integer.) Sales revenue will -Select- by approximately $ thousand,
The table shows the approximate increase in sales that an additional $100 spent on advertising, at various levels, can be expected to generate. Increase in Revenue Due to an Extra $100 Advertising When Advertising Is Already at a Given Level Expenditures, x (hundred dollars) 25 50 75 100 125 150 175 Revenue Increase, R' (thousand dollars) 4 59 94 107 104 78 33 (a) Find the function of the quadratic model that gives the approximate increase in revenue in thousand dollars per hundred dollars that occurs when an additional $100 is spent on advertising, where x is the amount in hundred dollars already spent on advertising, with data from 25 ≤ x ≤ 175. (Round all numerical values to three decimal places.) R'(X) = thousand dollars per hundred dollars (b) Use the model in part (a) to write the function of the model for the total sales revenue R in thousand dollars when x hundred dollars is spent on advertising. Use the fact that revenue is approximately $876,000 when $5000 is spent on advertising. (Round all numerical values to three decimal places.) R(x) = thousand dollars (c) The managers of the business are considering an increase in advertising expenditures from the current level of $8000 to $13,000. What effect will this decision have on sales revenue? (Round your answer to the nearest integer.) Sales revenue will -Select- by approximately $ thousand,
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The table shows the approximate increase in sales that an additional $100 spent on advertising, at various levels, can be expected to generate.
Increase in Revenue Due to an Extra $100
Advertising When Advertising Is Already at a
Given Level
Expenditures, x
(hundred dollars)
25
50
75
100
125
150
175
Revenue Increase, R
(thousand dollars)
4
59
94
107
104
78
33
(a) Find the function of the quadratic model that gives the approximate increase in revenue in thousand dollars per hundred dollars that
occurs when an additional $100 is spent on advertising, where x is the amount in hundred dollars already spent on advertising, with
data from 25 ≤ x ≤ 175. (Round all numerical values to three decimal places.)
R'(X) =
thousand dollars per hundred dollars
(b) Use the model in part (a) to write the function of the model for the total sales revenue R in thousand dollars when x hundred dollars
is spent on advertising. Use the fact that revenue is approximately $876,000 when $5000 is spent on advertising. (Round all numerical
values to three decimal places.)
R(x) =
thousand dollars
(c) The managers of the business are considering an increase in advertising expenditures from the current level of $8000 to $13,000.
What effect will this decision have on sales revenue? (Round your answer to the nearest integer.)
Sales revenue will -Select-by approximately $
thousand.
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