What is the premium expense

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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

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