Holiboo Holiday Shoppe placed a $1.00-off coupon in a free-standing insert circulated in Crafting magazine. The insertion is expected to reach 45 million people at a cost of $7.75 per thousand. Holiboo paid $1,000 to get an agency to design and lay out the insert. Holiboos promotional manager estimates that 2 percent of consumers who receive the coupon will redeem it, but that 18 percent of those redemptions will not be accompanied by a valid product purchase. Holiboo must pay 10 cents per redemption in processing fees to retailers and redemption centers.

What is the distribution cost associated with this coupon program?