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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


Team Careers360 3rd Jan, 2024
Answer (1)
Team Careers360 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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