The answer is NOT 0.27!

VECCMs (vitamin enhanced chocolate coated marshmallows) failed to gain distribution in most health food stores, but Paul was determined to pursue his dream of marketing a good-tasting snack food that would include minimum daily requirements of most vitamins and minerals. He sold them in 160z resealable bags through independent grocery stores throughout the Mid-Atlantic. Paul's Selling prices to wholesalers of $0.93 a bag resulted in a contribution margin before advertising and promotion of 39%. Wholesalers sold to retailers and retailers to consumers, earning margins of 21% and 50% respectively. Sales are currently 1,400 bags per week. Paul is considering distributing 1 million free standing insert (FSI) coupons for $0.20 off the regular price and expects to pay $5 per thousand for artwork and distribution. Each coupon redeemed will cost an additional $0.02 in processing fees. What is the average cost per coupon redeemed if Paul achieves the 2% redemption rate