Question
Sheffield Gravity Grips produces spike sets for track shoes. CEO Brittany Sheffield has gathered the following information about the companys sales volume and marketing cost
Sheffield Gravity Grips produces spike sets for track shoes. CEO Brittany Sheffield has gathered the following information about the companys sales volume and marketing cost for the past six months:
Sales Volume | Total Marketing Costs | ||||||||
January | 550,928 | $82,744 | |||||||
February | 390,732 | $76,214 | |||||||
March | 561,372 | $83,040 | |||||||
April | 543,000 | $82,489 | |||||||
May | 546,656 | $82,488 | |||||||
June | 553,288 | $82,908 |
Using the high-low method, compute the variable marketing cost per spike set. (Round unit cost to 2 decimal places, e.g.52.75.)
A. Variable Marketing Costs = $____ Per spike set sold.
B. Compute the total fixed marketing costs.
C. Represent the Marketing Cost Function in equation form.
D. Examine the data and identify the potential outlier.
E. Recalculate the marketing cost function, removing the potential outlier.
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