Selling Price and Amount Spent Advertising Were Entered into a Multiple

question 31

Multiple Choice

Selling price and amount spent advertising were entered into a multiple regression to determine what affects flat panel LCD TV sales. Using the output below, estimate
The number of units sold on average at a store that sells the Sony Bravia for $2199
And spends 10% of its advertising budget on the product. $$\begin{array}{l}\text { Dependent Variable is Sales }\\\begin{array} { l r r r r } \text { Predictor } & \text { Coef } & \text { SE Coef } & \text { T } & \text { P } \\\text { Constant } & 90.19 & 25.08 & 3.60 & 0.001 \\\text { Price } & - 0.03055 & 0.01005 & - 3.04 & 0.005 \\\text { Advertising } & 3.0926 & 0.3680 & 8.40 & 0.000\end{array}\end{array}$$

• A) 53.94 units
• B) 120 units
• C) 66.54 units
• D) 90.34 units
• E) None of the above.

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Definitions:

Cost of Goods Sold

Cost of Goods Sold (COGS) is the direct costs attributable to the production of the goods sold in a company, including material and labor expenses.

Cost of Goods Manufactured

The total expense incurred from manufacturing goods, including materials, labor, and overhead, during a specific period.

Capital Expenditures

Capital utilized by a corporation to purchase, improve, and upkeep tangible assets like land, factories, or machinery.

Fixed Assets

Long-term tangible assets used in operations and not intended for resale, such as machinery, buildings, and land.