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15. Palmer Frosted Flakes Company offers its cust...

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15. Palmer Frosted Flakes Company offers its customers a pottery cereal bowl if they send in 3 boxtops from Palmer Frosted Flakes boxes and $1. The company estimates that 60% of the boxtops will be redeemed. In 2012, the company sold 675,000 boxes of Frosted Flakes and customers redeemed 330,000 boxtops receiving 110,000 bowls. If the bowls cost Palmer Company $3 each, how much liability for outstanding premiums should be recorded at the end of 2012? A) $138,000 B) $50,000 C) $75,000 D) $270,000

 

Paper#4995 | Written in 18-Jul-2015

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