Your Competitive Intelligence team reports that a wave of product liability lawsuits is likely to cause Chester to pull the prod
1 answer:
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Answer:
d. $1,000
Explanation:
Implicit cost is the cost which has been incurred, and cannot be avoided. It is best described as an opportunity cost that has been foregone, here the funds have been borrowed specially for coffee shop. Interest expense of $8,000 is the cost for such borrowing, also the amount withdrawn from savings account have been used for coffee shop but the interest income foregone is the opportunity cost = $50,000.00 2% = $1,000 is implicit cost.
Therefore, correct option is d. $1,000