Practicing Success
Calculate operating surplus from the following :
Choose the correct option. |
₹110 Cr ₹130 Cr ₹80 Cr ₹100 Cr |
₹100 Cr |
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 |