Mott Co. includes one coupon in each bag of dog food it sells. In return for eight coupons, customers receive a leash. The leashes cost Mott $2.00 each. Mott estimates that 40 percent of the coupons will be redeemed. Data for 2010 and 2011 are as follows:

The estimated liability for premiums at December 31, 2010 is

A) $7,500.

B) $10,000.

C) $17,500.

D) $20,000.

Answer rating: 100% (QA)

December 31 2010 Bags of dog food sold 500000 Coupons sold 500000 Proba... View the full answer