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:

Nature And Nurture

The debate concerning the relative importance of an individual's innate qualities versus their personal experiences in determining or causing differences in physical and behavioral traits.

Germinal Period

The initial two weeks of prenatal development after conception, characterized by rapid cell division and the attachment of the zygote to the uterine wall.

Zygote's Outer Cells

The cells on the periphery of a zygote (the earliest embryonic stage) that contribute to the development of the placenta and other supporting structures for the embryo.

Implantation

The process, beginning about 10 days after conception, in which the developing organism burrows into the uterus, where it can be nourished and protected as it continues to develop.