Mott Co. includes one coupon in each bag of dog food it sells. In return for eight coupons, customers receive a leash. The leashes cost Mott $2.00 each. Mott estimates that 40 percent of the coupons will be redeemed. Data for 2010 and 2011 are as follows:
Bags of dogfood sold in 2010: 500,000
Leashes Purchased in 2010: 18,000
Coupons Redeemed in 2010: 120,000
what is the premium expense for 2010 ?