Question

A company finds that there is a linear relationship between the amount of money that it spends on advertising and the number of units it sells. If it spends no money on advertising it sells 100 units. For each additional $2500 spent, an additional 25 units are sold. If x is the amount of money that the company spends on advertising, find a formula for y, the number of units sold as a function of x. (do not use commas in your formula)

Answer 1

y = (x / 100) + 100

Step-by-step explanation:

First, we need to know the amount of money that it spends on advertising for each extra unit sold. That would be equal to: 2,500 / 25 = 100

This value will be the divisor of the advertising expense (x) to obtain the variable factor of the number of units.

Since 100 units are already sold without investment, this value is taken as fixed and added.

And with the previous data, the formula remains:

y = (x / 100) + 100