Please explain clearly and show each step for how to do this problem please!! Thank you so much !

Tiger Company sold 1,000,000 boxes of cereal under a new sales promotional program in 2019. Each box contains one coupon, which submitted with $2.00, entitles the customer to a stuffed animal. Tiger pays $4.00 per stuffed animal and $1.20 for handling and shipping. Tiger estimates that 40% of the coupons will be redeemed, even though only 100,000 coupons had been processed during 2019. What amount should Tiger report as a liability for unredeemed coupons at December 31, 2019