Question : If average capital employed in a firm is Rs.5,00,000, actual profit is Rs.70,000 and normal rate of return is 10%, then super profit is:
Option 1: Rs.40.000
Option 2: Rs.30,000
Option 3: Rs.50,000
Option 4: Rs.20,000
Answer (1)
20th Jan, 2024
Correct Answer: Rs.20,000
Solution :
Normal Profit = Capital employed X Normal rate of return = Rs.5,00,000 X 10% = Rs.50,000.
Super Profit = Average Profit - Normal Profit = Rs.70,000 - Rs.50,000 = Rs.20,000
Hence, the correct option is 4.
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