(See Solution) Advertising Many businesses spend money each year on advertising in order to stimulate sales of their products. The data given show the approximate
Question: Advertising Many businesses spend money each year on advertising in order to stimulate sales of their products. The data given show the approximate increase in sales (in thousands of dollars) that an additional $100 spent on advertising, at various levels, can be expected to generate.
- Find a model for these data.
- Use the model in part \(a\) to determine a model for the total sales revenue \(R(x)\) as a function of the amount \(x\) spent on advertising. Use the fact that revenue is approximately 877 thousand dollars when $\$ 5000$ is spent on advertising.
- Find the point where returns begin to diminish for sales revenue.
- The managers of the business are considering an increase in advertising expenditures from the current level of $\$ 8000$ to $\$ 13,000 .$ What effect could this decision have on sales revenue?
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