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Use the following information for questions 127, 128, and 129.
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 $3 each. Muggs estimates that 45 percent of the coupons will be redeemed. Data for 2014 and 2015 are as follows:
-The premium liability at December 31, 2015 is
Equity Theory
A theory that proposes individuals are motivated by a sense of fairness in the comparison of their own input-output ratio to that of others.
Perceived Inequity
A feeling experienced by employees when they believe the rewards they receive are not proportional to their contributions when compared to others.
Contribution
The effort or impact an individual or group provides towards achieving the objectives of an organization.
Equity Theory
A theory of motivation that suggests employees are motivated to achieve a balance between their inputs and outputs in the workplace, comparing themselves to others in similar situations.
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