In an Effort to Increase Sales,Sharpy Razor Blade Company Inaugurated

question 8

Multiple Choice

In an effort to increase sales,Sharpy Razor Blade Company inaugurated a sales promotion campaign on June 30,2014,whereby Sharpy placed a coupon in each package of razor blades sold,the coupons being redeemable for a premium.Each premium costs Sharpy $0.75,and five coupons must be presented by a customer to receive a premium.Sharpy estimated that only 60 percent of the coupons issued will be redeemed.For the six months ended December 31,2014,the following information is available: What is the estimated liability for premium claims outstanding at December 31,2014?

• A) $15,000
• B) $20,000
• C) $21,000
• D) $22,500

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Definitions:

Estrogen

A group of steroid hormones that promote the development and maintenance of female characteristics of the body.

Cortisol

A steroid hormone produced by the adrenal glands, often released in response to stress and low blood-glucose concentration.

Lipid

A group of naturally occurring molecules that include fats, waxes, sterols, fat-soluble vitamins (such as vitamins A, D, E, and K), monoglycerides, diglycerides, triglycerides, and phospholipids.

Body Dissatisfaction

A negative self-evaluation of one's body or appearance, often leading to psychological distress and unhealthy behaviors.