Allocation of Advertising (SIA) The H Company allocates national magazine advertising cost to territories on the basis of circulation, weighted by an index that measures relative buying power in the territories. Does this method give cost and profit figures appropriate for the following decisions? Indicate clearly why or why not. P 1. For deciding whether or not to close an unprofitable territory Nv ) NI y 2. For deciding whether or not a territorial manager has obtained sufficient sales volume 3. For determining how efficiently the territorial manager has operated his territory 4. For determining whether or not advertising costs are being satisfactorily controlled. lop2