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 Expense	Annual 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.

2. Graph annual sales and advertising expense. (Use the line tool to draw the annual sales and advertising expense. To complete the graph, click annual sales and then click the graph to bring up data coordinates. Enter the exact data coordinates for each activity level.)