As part of a promotion campaign, funzy cereal includes one
coupon in each issue of various national magazines and offers a toy
car in exchange for $1.30 and two coupons. the cars cost funzy
$1.80 each. experience indicates that 40% of the coupons eventually
will be redeemed. during the last month of 2018, the first month of
the offer, 11.50 million coupons were distributed and 2.80 million
of the coupons were redeemed. what amount should funzy report as a
promotional expense for coupons on its december 31, 2018, income
statement?
multiple choice
$1,150,000.
$2,300,000.
$575,000.
$ 0.