As Part of a Promotion Campaign, Funzy Cereal Includes One

question 26

Multiple Choice

As part of a promotion campaign, Funzy Cereal includes one coupon in each issue of various national magazines and offers a toy car in exchange for $1.00 and three coupons. The cars cost Funzy $1.50 each. Experience indicates that 4% of the coupons eventually will be redeemed. During the last month of 2018, the first month of the offer, 12 million coupons were distributed and 240,000 million of the coupons were redeemed. What amount should Funzy report as a promotional expense for coupons on its December 31, 2018, income statement?

• A) $0.
• B) $40,000.
• C) $80,000.
• D) $120,000.

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Definitions:

Pet Ownership

The act of owning or being responsible for pets, which are domesticated animals kept for companionship or enjoyment.

Males Vs. Females

This term is related to comparing or contrasting characteristics, behaviors, or statistical data between male and female populations.

Nominal Variables

Variables that represent categories with no intrinsic ranking or order among them.

Data

Information, especially facts or numbers, collected to be examined and considered and used to help decision-making.