At the end of the year, Clinton recognized a provision equal to the estimated cost of potential prizes outstanding. What is the amount of this provision?

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The Clinton Company launched a new sales promotional program. For every 10 chewing gum box tops returned to Clinton, customers receive an attractive prize. Clinton estimates that 40% of the chewing gum box tops reaching the consumer market will not be redeemed. Additional information is as follows: Sales of chewing gum(in boxes) Purchase of prizes by Clinton Prizes distributed to customers Units P3,000,000 80,000 42,000 Amount P3,600,000 40,000 The Clinton Company launched a new sales promotional program. For every 10 chewing gum box tops returned to Clinton, customers receive an attractive prize. Clinton estimates that 40% of the chewing gum box tops reaching the consumer market will not be redeemed. Additional information is as follows: Sales of chewing gum(in boxes) Purchase of prizes by Clinton Prizes distributed to customers Units P3,000,000 80,000 42,000 Amount P3,600,000 40,000

Answer rating: 100% (QA)

i Number of Units Sold 3000000 On 10 boxes 1 prize would be paid but ... View the full answer