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Did you ever answer kbhp 1988 questions one or two
1. In an effort to increase sales, Rofix Company began a sales promotion campaign on June 30, 2011. Part of this promotion included placing a special coupon in each package of candy bars sold. Customers were able to redeem ten coupons for a Frisbee. Each premium costs Rofix $1.50. Rofix estimated that 60 percent of the coupons issued will be redeemed. For the six months ended December 31, 2011, the following information is available:
Packages of candy bars sold... 3,200,000 Premiums purchased... 172,000 Coupons redeemed... 1,425,000 What is the estimated liability for premium claims outstanding at December 31, 2011? How do you firgure out the problem? |
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