Battlecreek Breakfast Places a Coupon in Each Box of Its

Battlecreek Breakfast places a coupon in each box of its cereal product.Customers may send in five coupons and $3, and the company will send them a recipe book.Sufficient books were purchased at a cost of $5 each.A total of 500, 000 boxes of product were sold in 2010.It was estimated that 4% of the coupons would be redeemed.During 2010, 9, 000 coupons were redeemed.What is Battlecreek's premium expense for 2010?

A) $ 4, 400
B) $ 8, 000
C) $20, 000
D) $40, 000