Muggs Co. includes one coupon in each bag of dog food it sells. In return...
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Muggs Co. includes one coupon in each bag of dog food it sells. In return for eight coupons, customers receive a leash. The leashes cost Muggs $4 each. Muggs estimates that 45 percent of the coupons will be redeemed. Data for 2017 and 2018 are as follows:
2017 2018
Bags of dog food sold 500,000 600,000
Leashes purchased 18,000 22,000
Coupons redeemed 120,000 150,000
___18. The premium liability at December 31, 2018 is
A) $30,000. B) $52,500. C) $60,000. D) $112,500.
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