Question: 39. Star Wars Cereal started a program at the beginning of 2021 in which it would provide a figurine of Baby Yoda in exchange for

39. Star Wars Cereal started a program at the beginning of 2021 in which it would provide a figurine of Baby Yoda in exchange for two proof-of-purchase box tops. Star Wars Cereal estimates that 25% of box tops will be redeemed. The Baby Yoda figurines cost Yummy Rice $1.70 each. In 2021, 4,520,000 boxes of cereal were sold. By year-end 888,000 box tops had been redeemed. Required: Calculate the premium expense that Star Wars Cereal should recognize for the year ended December 31, 2021.

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