Bramble Corp. includes one coupon in each bag of dog food it sells. In return for eight coupons, customers receive a leash. The leashes cost Bramble $5 each. Bramble estimates that 40 percent of the coupons will be redeemed. Data for 2020 and 2021 are as follows:

2020 2021

Bags of dog food sold 510000 600000

Leashes purchased 16000 20000

Coupons redeemed 130000 170000

The premium expense for 2020 is

$127500.

$83750.

$318750.

$43750.