Sweeney enterprises manufactures tires for the formula i motor racing circuit. the company's budgeted and actual amounts are as follows: budgeted for august 2017 units to manufacture and sell 3,600 variable cost per tire $71 total fixed costs $55,000 budgeted selling price per tire $114 actual results for august 2017 units manufactured and sold 3,500 selling price per tire $116 total variable costs $280,000 total fixed costs $51,000

Total marketing effort is a term used to describe the critical decision factors that affect demand: price, advertising, distribution, and product quality. define the variable x to represent total marketing effort. a typical model that is used to predict demand as a function of total marketing effort is based on the power function: d = axb suppose that a is a positive number. different model forms result from varying the constant b. sketch the graphs of this model for b = 0, b = 1, 0< b< 1, b< 0, and b> 1. (we encourage you to use excel to do this.) what does each model tell you about the relationship between demand and marketing effort? what assumptions are implied? are they reasonable? how would you go about selecting the appropriate model?