Zippy's economic profit is $80,000.
Economic Profit = Revenues - (Explicit Cost + Implicit Cost)
Implicit cost or opportunity cost refers to the loss an individual incurs from an alternative decision, as a result of making a decision.
In this question, Zippy's implicit costs are the $30,000 from his job at Joe's car repair.
Additionally, he loses the 10% interest he would have earned on his savings of $150,000 had he not started his business.
So Zippy's implicit cost is $45,000 ($30,000 + $15,000)
The operations process for what
Answer:
d.No effect on the expenses of the current period.
Explanation:
In the case when the credit balance of the allowance for doubtful debt more than the bad debt amount i.e. written off
So the entry for writing off against the allowance would result in no effect on the expense for the present period
As the bad debt expense is debited and the allowance for doubtful debt would be credited therefore the option d is correct
The letter of credit is the financial document which tells that a bank will pay a specified sum of money to a beneficiary
Letter of credit is also called documentary credit or bankers commercial credit.
The financial document called "Letter of credit" is a a letter written by a financial institution which authorizing another institution to pay someone a sum of money.
This document is usually a mode of payment used for the importation of visible goods.
In conclusion, the document called "letter of credit" is the financial document which tells that a bank will pay a specified sum of money to a beneficiary
Read more about letter of credit
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<span>100%-35%=65%
the compliment of 35% is 65%
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