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1 7. The following information for advertising and sales has been established over the past six months: Month Sales revenue Advertising expenditure $'000 $'000 155

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1 7. The following information for advertising and sales has been established over the past six months: Month Sales revenue Advertising expenditure $'000 $'000 155 3 2. 125 3 200 6 4 175 5.5 5 150 4.5 6 225 6.5 2.5 Using the high-low method which of the following is the correct equation for linking advertising and sales from the above data? A. Sales revenue = 62,500 + (25 x advertising expenditure) B. Advertising expenditure - 2,500 + (0.04 % sales revenue) C. Sales revenue = 95,000 + (20 x advertising expenditure) D. Advertising expenditure = -4,750 + (0.05 X sales revenue) (2 marks)

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