We are given an estimate equation.
Let the estimate sales volume be "s" and advertising expenditure be "a".
The given equation is:
[tex]s=47.81+0.47a[/tex]The company has a target sales of 175,000, which is a value for "s".
To get how much they need to allocate for advertising, we can solve for "a" in the equation and substitute the "s" value with 175,000:
[tex]\begin{gathered} s=47.81+0.47a \\ 47.81+0.47a=s \\ 0.47a=s-47.81 \\ a=\frac{s-47.81}{0.47} \end{gathered}[/tex]Now we substitute 175,000 into "s":
[tex]a=\frac{175,000-47.81}{0.47}=\frac{174,952.19}{0.47}=372,238.7021\ldots\approx372,239[/tex]So, by the equation estimate, the sales manager should allocate $327,239 for advertising.
