As part of a promotional campaign, Funzy Cereal includes a coupon in every issue of various national magazines and offers a toy car for $1.60 and 2 coupons. The cars cost Funzy $2.10 each. Experience indicates that 40% of the coupons will eventually be redeemed. During the last month of 2013, the first month of the offer, 12.00 million coupons were distributed and 2.30 million of the coupons were redeemed.

What amount should Funzy report as coupon promotional expense on its December 31, 2013 income statement?

Answer rating: 100% (QA)

To calculate the coupon promotional expense for Funzy we need to determine the number of toy cars th... View the full answer