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Miracle Company manufactures a product that is packaged and sold. Each sale is accompanied by 3 coupons to be able to purchase a plate. A plate is offered to customers sending in two coupons accompanied by a remittance of P2.
Date with respect to the premium offer are summarized below
Sales @ P250 per unit 4,200,000 3,600,000Purchase of premium, P10 per plate 580,000 390,000Estimated number of plates that will be distributed 80% 70%Premiums distributed 17,000 13,000Distribution cost P5 per plate
Problem 1: How much is the premium expense for 2020?
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