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Uncle Ben's Rice Attached a $1-Off Coupon to the Outside

Question 42

Multiple Choice

Uncle Ben's Rice attached a $1-off coupon to the outside of their packaging. They distributed 1,000,000 promotional packages, at a cost of $20,000 for design and production. They predict that the redemption rate will be 5%. They pay retailer handling and processing costs of 10¢ per coupon redeemed. What is the total cost of the coupon promotion to Uncle Ben's?


A) $150,000
B) $75,000
C) $7,500
D) $55,000

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