What is the premium expense

Reference no: EM132718167

Question - Pasado Company includes one coupon in each box of laundry soap it sells. A towel is offered as a premium to customers who send in 10 coupons and a remittance of P10. Distribution cost of premium is P5. Experience indicates that only 30% of the coupons will be redeemed. What is the premium expense for 2018?

a. 2,500,000

b. 2,400,000

c. 1,800,000

d. 2,700,000

Reference no: EM132718167

Questions Cloud

Global masters in business management : Prepare a presentation of no more than 5 slides summarising the salient points of the findings of their report. The students will not be requested to present

Determine the amount of basic earnings per share : On January 1, 2X16, Manila Co. has 100,000 outstanding ordinary shares. Determine the amount of basic earnings per share

Vast majority of the population associates blockchain : The vast majority of the population associates Blockchain with cryptocurrency Bitcoin; however, there are many other uses of blockchain

Macro-economic forecasting for instance dynamic stochastic : The study to involve other important modelling approaches such as theory-based macro-economic forecasting for instance Dynamic Stochastic.

What is the premium expense : Distribution cost of premium is P5. Experience indicates that only 30% of the coupons will be redeemed. What is the premium expense for 2018

What are the primary findings of the study : The benefits of an apology for a deficient audit following an audit failure. What are the primary findings of the study? What is the purpose of the study

Differences between new and established patient designations : You learned about the differences between new and established patient designations.

Why should an organisation use authentication : Why should an organisation use both authentication and authorisation? In your answer, provide an example of each

Dynamics for highly effective or ineffective team : Discuss the team dynamics for a highly effective or ineffective team of which you were a member.

User Account

All Pages