Question

If capital employed of a business is Rs. 4,60,250 and Normal rate of business is 10%. Calculate the Normal Profit of the business. ​

Answer 1

Answer:46025

Explanation:

Step 1: Calculation of Capital Employed:  

Capital Employed= 460250

Step 2: Calculation of Normal Profit:

Normal Profit= 460250* [10/100]

                     = 46025

Answer 2

Explanation:

Solution :

Capital Employed of a business is Rs. 4,60,250

Normal rate of business is 10%.

Normal Profit = ??

Normal Profit = Capital Employed × (Normal Rate of Return/100)

= 4,60,250 × (10/100)

= 46,025

Normal Profit = Rs. 46,025

Hence, the Normal Profit of the business = Rs. 46,025.