Brealle Corp. sells a range of sunglasses. To attract sales, it began a mail-in-rebate promotion in 20X3. In 20X3 Brealle Corp. heavily promoted the program, and as a result sales grew.
The rebate program involves Brealle Corp. issuing coupons that customers may use to obtain a $50 rebate on sunglasses when proof of purchase is submitted.
The graph shows the provision for coupon refund and coupons redeemed between 20X3 and 20X6. The graph also shows the estimated percentage of coupons to be redeemed and the coupons redeemed as a percentage of coupons issued.

Required:
Interpret the graph. Do you think the provision should be revised in 20X7?

Transcribed Image Text:

Amount $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $- 70% 20X3 70% 20X4 70% 20X5 Year Provision for coupon refund Coupons redeemed - Coupons redeemed as percentage of coupons Issued Brealle Corp. Provision for Coupon Refund and Coupons Redeemed 20X3-20X6 70% 70% 35% 80% 20X6 60% 50% 40% 30% -20% 10% 0% Estimated number of coupons to be redeemed