Exhibit 9-1 The Happy Cereal Company includes a premium in each box of its cereal. For four premiums plus $2.00, customers are entitled to a plastic wiggle worm that costs Happy $4.50 each. Happy expects 60% of the premiums to be redeemed. In 2016, Happy sold 500,000 boxes of cereal and distributed 25,000 wiggle worms. Refer to Exhibit 9-1. What is Happy's premium expense for 2016?
A) $125,000
B) $187,500
C) $225,000
D) $337,500
B
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A. Human intelligence B. Psychological intelligence C. Emotional intelligence D. Management intelligence
A purchase order is a document the purchasing department sends to the vendor to place an order.
Answer the following statement true (T) or false (F)
Which of the following is an example of a committed fixed cost?
a. investment in production facilities b. advertising c. preventive maintenance d. employee training programs
In the growth stage of the product life cycle, competition:
A. is virtually nonexistent. B. begins as firms enter the market with new variations of existing products. C. decreases with many weaker firms already leaving the market. D. spurs major price cuts, which dramatically cut into profits.