What is called super profit?

Correct answer: Profit left after deducting normal profit from average profit

Super profit is the excess of maintainable or average profit over normal profit expected from the capital employed at the normal rate of return. The governing formula is: Super Profit = Average Profit − Normal Profit. Thus, if average profit is ₹1,10,000 and normal profit is ₹85,000, super profit is ₹25,000. In the present conceptual question, option A correctly describes this surplus. Option B confuses sales with profit, while option C concerns drawings and capital rather than earning capacity. Option D represents expenses, not an excess profit. Super profit is commonly used in the super-profit method of goodwill valuation.