Use the following information for questions 127, 128, and 129.
Muggs Co. includes one coupon in each bag of dog food it sells. In return for eight coupons, customers receive a leash. The leashes cost Muggs $3 each. Muggs estimates that 45 percent of the coupons will be redeemed. Data for 2014 and 2015 are as follows:
-The premium liability at December 31, 2015 is
A) $22,500.
B) $39,375.
C) $45,000.
D) $84,375.

Question

Use the following information for questions 127, 128, and 129.
Muggs Co. includes one coupon in each bag of dog food it sells. In return for eight coupons, customers receive a leash. The leashes cost Muggs $3 each. Muggs estimates that 45 percent of the coupons will be redeemed. Data for 2014 and 2015 are as follows: 
-The premium liability at December 31, 2015 is
A) $22,500. 
B) $39,375. 
C) $45,000. 
D) $84,375.

Quizplus · Accepted Answer

The Answer of Use the following information for questions 127, 128, and 129.
Muggs Co. includes one coupon in each bag of dog food it sells. In return for eight coupons, customers receive a leash. The leashes cost Muggs $3 each. Muggs estimates that 45 percent of the coupons will be redeemed. Data for 2014 and 2015 are as follows: 
-The premium liability at December 31, 2015 is
A) $22,500. 
B) $39,375. 
C) $45,000. 
D) $84,375.

Use the Following Information for Questions 127, 128, and 129