1.

Total assets and liabilities of the firm are 70000 and 10000. Average profit is? 8000.NRR 10% .calculate superprofit

Answer»

WORKING NOTE :

capital employed = asset - liabilities

= 70000-10000

=60000


Normal profit = capital employed * normal rate of return/100

= 60000*10/100

=6000


super profit = AVERAGE profit - normal profit

= 8000-6000

=2000


super profit = 2000


Hope its usefull.!!



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