A Cereal Company Includes One Premium Coupon in Every Cereal

question 25

Multiple Choice

A cereal company includes one premium coupon in every cereal box. Upon returning 10 such coupons to the company, a customer will be sent a free cereal bowl. In a recent year, the company sold 200,000 boxes of cereal for $1 a box. It is estimated that 20% of the coupons will be returned. If the cereal bowls cost the company $3 each, what amount of liability for premium redemptions must be recorded by the company?

• A) $ 6,000
• B) $ 12,000
• C) $200,000
• D) $ 24,000

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Definitions:

Job Description

A formal account of an employee's responsibilities, duties, and the scope of a specific job.

Compensation Plan

A complete package that outlines employees' wages, salaries, benefits, and terms of payment in an organization.

Salespeople

Individuals whose job is to sell products or services to customers, either in person, over the phone, or via digital channels.

Emotional Intelligence

The ability to recognize, understand, and manage one's own emotions as well as the emotions of others.