Reference no: EM132561183

Kelly Company is placing an ad in the local paper to advertise its products. The ad will run for one week at a total cost of P5,500. Kelly Company has four categories of products as follows:

                             % of floor space occupied                    Expected sales value

Hardware                              20%                                         P35,000

Hand Tools                            15                                              15,000

Lawn Furniture                       45                                              64,500

Light Fixtures                         20                                                25,500

Question 1: What amount of advertising cost should be allocated to hardware, assuming Kelly allocates based on percent of floor space occupied?

Question 2: Assume that Kelly decides to allocate based on expected sales value. What amount of advertising cost should be allocated to light fixtures (round to the nearest dollar)?