Waterway Industries includes one coupon in each bag of dog food it sells. In return for eight coupons, customers receive a leash. The leashes cost Waterway $3 each. Waterway estimates that 50 percent of the coupons will be redeemed. Data for 2020 and 2021 are as follows:

		2020		2021
Bags of dog food sold		490000		590000
Leashes purchased		20000		22000
Coupons redeemed		110000		150000

The premium liability at December 31, 2020 is

$44375.

$50625.

$66375.

$54375.