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Problem - Coles is the biggest Australian supermarket chain, headquartered in Melbourne. Now, Coles is planning to have Christmas promotion whereby a customer who purchases three boxes of cookies at $10 per box in a single transaction in a store receives an offer for one free box of cookies if the customer fills out a request form and mails it to them before the end of this year. The Chief Marketing Officer (CMO) of Coles estimates, based on recent experience with similar promotions, that 60% of the customers will complete the mail-in rebate required to receive the free box of cookies.
Required - Explain how much revenue Coles should recognize from a 'buy three, get one free' transaction.
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