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Author Question: Yarlan Gravity Grips produces spike sets for track shoes. CEO Brittany Yarlan has gathered the ... (Read 62 times)

Tiffanyanne824

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Yarlan Gravity Grips produces spike sets for track shoes. CEO Brittany Yarlan has gathered the following information about the company's sales volume and marketing cost for the past six months.

Sales VolumeTotal Marketing Costs
January550,700$82,770
February390,50074,525
March561,00083,050
April543,00082,330
May546,60082,480
June553,90082,960

Required:

a.Using the high-low method, compute the variable marketing cost per spike set.
b.Compute the total fixed marketing cost.
c.Represent the marketing cost function in equation form.
d.Examine the data and identify the potential outlier.
e.Recalculate the marketing cost function, removing the potential outlier.
f.Which of the two cost functions you calculated would be appropriate to use in
estimating future marketing costs? Why?


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Marked as best answer by Tiffanyanne824 on Feb 5, 2023

ellie

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Tiffanyanne824

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Reply 2 on: Feb 5, 2023
Excellent


fatboyy09

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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