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Question 3 The following extract is taken from the sales budget for UHertz Plc: Sales activity 50% 70% Budgeted Production units £188,000 E263,200 What is the production budget for a sales activity level of 85% Select the correct answer from the options below E319,600 £456,500 E287,400 £235.900 4 pts

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Question 3
The following extract is taken from the sales budget for UHertz Plc:
Sales activity	50% 	70% 
Budgeted Production units	£188,000 E263,200
What is the production budget for a sales activity level of 85% 
Select the correct answer from the options below
E319,600
£456,500
E287,400
£235.900
4 pts

Question 3 The following extract is taken from the sales budget for UHertz Plc: Sales activity 50% 70% Budgeted Production units £188,000 E263,200 What is the production budget for a sales activity level of 85% Select the correct answer from the options below E319,600 £456,500 E287,400 £235.900 4 pts

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VanceVeteran · Tutor for 12 years

Answer

From the alternatives given: <br />\( £319,600 \),<br />\( £456,500 \),<br />\( £.287,400 \), and<br />\( £235.900 \).<br />The computation that coincides with the nearest results is your final answer.

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## Step 1:<br />To solve this problem, we need to perform simple linear regression/memory rule from analysis to ascertain the relation between "Sales activity" and "Budgeted Production units."<br /><br />## Step 2:<br />By learning the example problem above, we assume \(y = mx + b \) is the linear equation where<br />- \( y \) represents the Budgeted Production units,<br />- \( x \) represents the Sales activity, <br />- "m" is the slope of the line, and<br />- "b" the y-dependent. <br /><br />## Step 3:<br />Because y equals the sales process, historically, y will increase (or decrease) based on its movement with "x" (production units), observable in this formula:<br /><br />### \( m = \frac{(y_2-y_1)}{(x_2-x_1)} \)<br /><br />For the given values:<br />- \( y_1 = £188,000 \) at \( x_1 = 50\% \)<br />- \( y_2 = £263,200 \) at \( x_2 = 70\% \)<br /><br />Inserting these values, we solve for "m". <br /><br />## Step 4:<br />Substitute the resultant "m", \( x_1 \), and \( y_1 \) in<br /><br />### \( b = y_1 - m \cdot x_1 \) <br /><br />to find the y-intercept, "b".<br /><br />## Step 5:<br />Now we substitute the resultantly found "m" and "b" in <br /><br />### \( y = m \cdot x + b\)<br /><br />where \( x = 85\% \) to ultimately calculate the last "y".<br /><br />Once all steps are properly done, confirm the outcomes.
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