Multiple Choice
A cereal company issues coupons that can be exchanged for boxes of cereal.It issues two million coupons that promise the retailer who redeems the coupons $1 per coupon.The probability of redemption of any one coupon is 10%. What is the amount of the liability that the company recognizes?
A) $2,000
B) $20,000
C) $100,000
D) $200,000
E) $2,000,000
Correct Answer:
Verified
Correct Answer:
Verified
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