How much is the premium expense for the year 2007

Reference no: EM133611962

Question: During 2007, A Company sold 500,000 boxes of cake mix under a new sales promotional program. Each box contains one coupon, which submitted with P4.00 entitles the customer to a baking pan. InfoTech pays P5.00 per pan and P1.50 for handling and shipping. A estimates that 80% of the coupons will be redeemed, even though only 300,000 coupons had been processed during the year. How much is the premium expense for the year 2007?

Reference no: EM133611962

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