Use the Following Information for Questions

question 95

Multiple Choice

Use the following information for questions.
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:
-The estimated premium liability at December 31, 2011 is

• A)$11,250.
• B)$21,250.
• C)$22,500.
• D)$42,500.

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Definitions:

U.S. Exports

Goods or services produced in the United States and sold to customers in other countries.

European Union

A political and economic union of 27 member countries that are located primarily in Europe, with policies aiming to ensure free movement of people, goods, services, and capital.

Canada and Mexico

Two countries that border the United States and are significant trade partners, especially in the context of the North American Free Trade Agreement (NAFTA).

Income Distribution

How a nation’s total GDP is distributed amongst its population, affecting economic inequality and standard of living.