Question

Diiference between average profit and super profit

Answer 1

Average profit - - It is a profit used to calculate the average profits in a year.. It is calculated by sum total of all years profits with total no of years..

ie = Average profit = sum total of all years profits / number of years..

There is no need to find out normal profits under average profits Calculation.

Super profits, - - - Super profits refers to deduction of normal profit from average profits..

ie.. super profits - - Average profits - normal year.

There is a need of Calculation normal profits..

Normal profits == Average profit* normal rate/100

Answer 2

Average profit = sum of all profits / no of years .

super profit = Average profit - normal profits