Final answer:
The question relates to Business at the College level, focusing on financial management and accounting. It deals with a company's credit sales, banking practices, and the calculation of a firm's accounting profit. The self-check question's answer indicates an accounting profit of $50,000 after subtracting necessary expenses from total sales revenue.
Step-by-step explanation:
The question asks about a company's credit sales and what percentage of those are profitable, result in losses, are paid in cash, or involve discounts. This falls under the subject of Business, specifically pertaining to financial management and accounting practices. The educational level is College, as the concept typically requires a more advanced understanding of business operations and financial analytics.
The provided information on business expenses and banking practices adds context on how firms handle profits, expenses, and calculate risks for loans and borrowings. The scenario involving a firm with accounting profit calculation provides an example closely related to credit sales profitability.
Accounting profit can be derived from the total sales revenue minus total expenses. In the self-check question provided, the firm's accounting profit is calculated by subtracting the expenses for labor ($600,000), capital ($150,000), and materials ($200,000) from the total sales revenue of $1 million. The firm's accounting profit, in this case, would be $50,000.