Question
The Model S is an electric luxury sedan produced by Sonnier Motors and introduced into the U.S. market in the Fall of 2008.Sonnier Motors spends
TheModel Sis an electric luxury sedan produced by Sonnier Motors and introduced into the U.S. market in the Fall of 2008.Sonnier Motors spends an average of $1MM per month on online and offline advertising to support sales of the Model S.The Model S, on average, sells about 10,000 units per month.The marketing analytics team has estimated the following sales response model using monthly sales (in units) and monthly ad expenditures (in $1,000's).Based on the model, what is the estimate of the long run impact of a $1MM increase in ad spend on unit sales.
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