Cost Management: A Strategic Emphasis 7th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

Exercise 15

Cost Estimation Using Graphs Lawson Advertising Agency is trying to persuade Kansas City Sailboards Company to spend more on advertising. The agency's argument is that a positive linear relationship exists between advertising and sales in the sailboard industry. Sue Lawson presents these data taken from industry data for stores similar in size and market share to Kansas City Sailboards:

Required
1. Graph annual sales and advertising expense.
2. Do the data prove Sue's point