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Question-
Albertson Corporation began a special promotion in July 2013 in an attempt to increase sales. A coupon was placed in each box of product. Customers could send in five coupons for a free prize. Each prize cost Albertson Corporation $3.00. Albertson's management estimated that 80% of the coupons would be redeemed. For the six months ended December 31, 2013, the following information is available:
Required:
What is the estimated liability for the premium offer at December 31, 2013?
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Write a 500 to 750 word report justifying the need for this system when controls are already in place with the insurance and portfolio approach. You should explain why current approaches are valid but why an internal system will be more beneficial..
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