Question
Dana owns her own real estate agency. It is difficult to determine how much she spends on advertising for each listing because some of her
Dana owns her own real estate agency. It is difficult to determine how much she spends on advertising for each listing because some of her advertising sources are fixed amounts each month and others are more variable in nature. She would like to analyze the following information to determine how her advertising costs behave based on the number of listings.
Month Number of Listings Advertising Cost
March 22 $15,280
April 26 $17,640
May 35 $23,145
June 42 $27,205
July 48 $30,565
August 51 $32,485
September 50 $31,835
October 56 $36,020
November 54 $34,920
Required: 1. Using the high-low-method, compute the variable cost of Danas advertising.
2. Compute the total fixed cost per month.
3. Represent the advertising costs cost function in equation form.
4. What is the expected cost if 60 listings are advertised?
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