Question: Flounder Corp. has a rewards program whereby customers get 1 point for every 5 9 spent on groceries. Each point is redeemable for a $

Flounder Corp. has a rewards program whereby customers get 1 point for every 59 spent on groceries. Each point is redeemable for a $1 discount toward the future purchase of groceries. During the month of May, Flounder sells goods worth $53100 and consequently rewards customers 5900 points. Based on past history. Flounder estimates that 80% of the rewards will be redeemed. Therefore, it is expected that 4720 points will be redeemed with a stand-alone value of $4720. A portion of the $53100 of sales is to be allocated to the rewards program based on the total stand-alone value of $57820($53100+ $4720). What is the revenue allocation for the current sales?
$53,100
$57,820
$48,765
$43,335

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