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What is barlo premium expense

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Question - Barlo Lunch Snacks places a coupon in each box of its cracker product. Customers may send in five coupons and $3, and the company will send them a recipe book. Sufficient books were purchased at a cost of $5 each. A total of 500,000 boxes of product were sold in 2014. It was estimated that 4% of the coupons would be redeemed. During 2014, 9,000 coupons were redeemed. What is Barlo's premium expense for 2014?

Reference no: EM132234494

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