Fulton Company
Fulton Company Is Placing an Ad in the Local

question 108

Multiple Choice

Fulton Company
Fulton 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 $5,500.Fulton Company has four categories of products as follows:
                                % of floor space  Expected sales
                                     $\text {\underline{ occupied.} }$     $\text {\underline{ value} }$
$\begin{array}{lcl}\text { Harchware } & 20 \% & \$ 35,000 \\\text { Hand Tools } & 15 & 15,000 \\\text { Lawn Fumiture } & 45 & 64,500 \\\text { Light Fixtures } & 20 & 25,500\end{array}$




Refer to Fulton Company.What amount of advertising cost should be allocated to hardware,assuming Fulton allocates based on percent of floor space occupied?

• A)$1,375
• B)$1,100
• C)$2,475
• D)$ 825

---

Definitions:

Solicitation

The act of requesting or seeking to obtain something, often used in the context of fundraising, advertising, or proposing business.

Voting Shares

Shares of a company's stock that grant the shareholder the right to vote on corporate matters.

Stock Portfolio

A collection of stocks owned by an individual or entity, representing their investments in the equity market.

Life Insurance Proceeds

The money paid out by an insurance company to the beneficiaries of a life insurance policy upon the policyholder's death.