SOLUTION: Business and finance. The revenue for a sandwich shop is directly proportional to its advertising budget. When the owner spent $2000 a month on advertising, the revenue was $120,

Algebra ->  Coordinate-system -> SOLUTION: Business and finance. The revenue for a sandwich shop is directly proportional to its advertising budget. When the owner spent $2000 a month on advertising, the revenue was $120,      Log On


   

Question 67333: Business and finance. The revenue for a sandwich shop is directly proportional
to its advertising budget. When the owner spent $2000 a month on advertising, the
revenue was $120,000. If the revenue is now $180,000, how much is the owner
spending on advertising?
Answer by Earlsdon(6294) About Me  (Show Source):
You can put this solution on YOUR website!
You can write the proportion: (A = Advertising costs and R = Revenue)
R+=+kA Revenue is directly proportional to Advertising costs. Find the value of k, the constant of proportionality when R = $120,000 and A = $2,000
120000+=+k%282000%29 Divide both sides by 2000
k+=+60. so:
R+=+60A Solve for A when R = $180,000
180000+=+60A Divide both sides by 60.
A+=+3000
$3,000 was spent on Advertising to produce $180,000 in revenue.