Use the Following Information for Questions
Kent Co -The Premium Expense for 2006 Is
A)$25,000

Multiple Choice

Use the following information for questions
Kent Co.includes one coupon in each bag of dog food it sells.In return for eight coupons, customers receive a leash.The leashes cost Kent $2.00 each.Kent estimates that 40 percent of the coupons will be redeemed.Data for 2006 and 2007 are as follows: $\begin{array}{lrr}&2006&2007\\\text { Bags of dog food sold } & 500,000 & 600,000 \\\text { Leashes purchased } & 18,000 & 22,000 \\\text { Coupons redeemed } & 120,000 & 150,000\end{array}$
-The premium expense for 2006 is

A) $25,000.
B) $30,000.
C) $35,000.
D) $50,000.