Lawson Advertising Agency is trying to persuade Kansas City Sailboards Company to spend more on advertising. The agencys argument is that a constant and strong positive 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 ExpenseAnnual Sales $2,500 $96,000 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. Use the high-low method to estimate the relationship between increased advertising and sales.