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Bonita Industries includes one coupon in each bag of dog food it sells. In return for 8 coupons, customers receive a leash. The leashes cost

Bonita Industries includes one coupon in each bag of dog food it sells. In return for 8 coupons, customers receive a leash. The leashes cost Bonita $5 each. Bonita estimates that 40 percent of the coupons will be redeemed. Data for 2021 is as follows: Bags of dog food sold Coupons redeemed The premium liability at December 31, 2021 is $86,250 $45,000 $41,250 $88,750 2021 780,000 170,000

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