Lawson Advertising Agency is trying to persuade Kansas City Sailboards Company to spend more money on advertising.

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Lawson Advertising Agency is trying to persuade Kansas City Sailboards Company to spend more money on advertising. The agency's argument is that a positive linear relationship exists between advertising and sales in the sailboard industry. Sue Lawson presents these data taken from industry data for stores similar in size and market share to Kansas City Sailboards:
Advertising Expense Annual Sales
$2,500 .............. $ 95,000
3,000 .............. 110,000
3,500 .............. 124,000
4,000 .............. 138,000
4,500 .............. 143,000
5,000 .............. 147,000
5,500 .............. 150,000

Required
1. Graph annual sales and advertising expense.
2. Do the data prove Sue’s point?

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Cost management a strategic approach

ISBN: 978-0073526942

5th edition

Authors: Edward J. Blocher, David E. Stout, Gary Cokins

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