Calculate operating surplus from the following :
| (₹ in Cr) | ||
| a | Rent & Interest | 50 |
| b | Bonus | 80 |
| c | Profit After Tax | 30 |
| d | Tax Rate | 40% |
Choose the correct option.
Answer & explanation
Correct answer: option 4
The correct answer is option (4) : ₹100 Cr
Pre Tax Profit= Profit After Tax / (1 - Tax Rate)
= ₹30 crore / (0.6) = ₹50 crore
Factors of production are: labourer (earning wages), entrepreneur (earning profits), as landlord (earning rents), as owner of capital (earning interests)
Operating surplus means the amount left with a firm after paying wages
Operating surplus = Rent + Interest + Profits
= 50+50
=100 Cr