A firm has an Average Profit of ₹25,000 and a Capital Employed of ₹2,00,000. The business earns a normal profit of 10%. Calculate its super profit.

₹5,000

The correct answer is option 4- ₹5,000.

Normal profit = Capital employed X Rate of return/100
                     = 2,00,000 x 10/100
                     = 20,000

Super profit = Average profit - normal profit
                   = 25,000 - 20,000
                   = 5,000