Laxada Marketing launched a new sales promotional program, or every seals of proof of purchase of their product, customers receive a double-layer reversible umbrella costing P200 eacn.  This umbrella may separately be sold for P300 each. The company estimates that 75% of the seals of proof of purchase reaching the consumer market will be redeemed. Product sales with seals of proof of purchase - 20,000 units for a total of P12,000,000  Premiums distributed to customers - 500 umbrellas How much of the total transaction price is allocated to the premium?

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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Laxada Marketing launched a new sales promotional program, or every seals of proof of purchase of their product, customers receive a double-layer reversible umbrella costing P200 eacn.  This umbrella may separately be sold for P300 each. The company estimates that 75% of the seals of proof of purchase reaching the consumer market will be redeemed.

Product sales with seals of proof of purchase - 20,000 units for a total of P12,000,000 
Premiums distributed to customers - 500 umbrellas

How much of the total transaction price is allocated to the premium?

aanswer: 220,859

What is the amount of additional sales recognized by Laxada upon redemption of premiums?

answer: 147,239

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