What is battlecreek''s premium expense for 2010


Battlecreek Breakfast places a coupon in each box of its cereal product. Customers may send in five coupons and $3, and the company will send them a recipe book. Sufficient books were purchased at a cost of $5 each. A total of 500,000 boxes of product were sold in 2010. It was estimated that 4% of the coupons would be redeemed. During 2010, 9,000 coupons were redeemed. What is Battlecreek's premium expense for 2010?

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Accounting Basics: What is battlecreek''s premium expense for 2010
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