Jake Co.includes three coupons in each bag of dog food it sells.In return for fifteen coupons, customers receive a dog leash.The leashes cost Jones $2.00 each.Jake estimate that 50% of the coupons will be redeemed.Data for 2014 and 2015 are as follows: The estimated liability for premiums for Jake Co.as at December 31, 2015 is:
A)$50,000.
B)$160,000.
C)$20,000.
D)$80,000.

Question

Jake Co.includes three coupons in each bag of dog food it sells.In return for fifteen coupons, customers receive a dog leash.The leashes cost Jones $2.00 each.Jake estimate that 50% of the coupons will be redeemed.Data for 2014 and 2015 are as follows:  The estimated liability for premiums for Jake Co.as at December 31, 2015 is:
A)$50,000. 
B)$160,000. 
C)$20,000. 
D)$80,000.

Quizplus · Accepted Answer

The Answer of Jake Co.includes three coupons in each bag of dog food it sells.In return for fifteen coupons, customers receive a dog leash.The leashes cost Jones $2.00 each.Jake estimate that 50% of the coupons will be redeemed.Data for 2014 and 2015 are as follows:  The estimated liability for premiums for Jake Co.as at December 31, 2015 is:
A)$50,000. 
B)$160,000. 
C)$20,000. 
D)$80,000.

Jake CoIncludes Three Coupons in Each Bag of Dog Food It