Mathematics · High-Low Method
The following information for advertising and sales has been established over the past six months: Month 1: Sales £155,000, Advertising £3,000 Month 2: Sales £125,000, Advertising £2,500 Month 3: Sales £200,000, Advertising £6,000 Month 4: Sales £175,000, Advertising £5,500 Month 5: Sales £150,000, Advertising £4,500 Month 6: Sales £225,000, Advertising £6,500 Using the high-low method, which of the following is the correct equation linking advertising and sales?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Advertising expenditure = £4,750 + 0.05 × sales revenue
- 2Sales revenue = £95,000 + 20 × advertising expenditure
- 3Advertising expenditure = £2,500 + 0.04 × sales revenue
- 4Sales revenue = £62,500 + 25 × advertising expenditure✓
Correct answer
Sales revenue = £62,500 + 25 × advertising expenditure
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