If average profit is ₹90000 and normal profit is ₹60000 what will be the super profit?

Correct answer: ₹30000

Super profit is the excess of average profit over normal profit. Average profit is what the business actually earns on average, while normal profit is the return expected on the capital employed at the normal rate. The formula is: Super Profit = Average Profit − Normal Profit. It is important not to use average profit alone, because only the amount above the normal return is called super profit.

The figures are average profit ₹90,000 and normal profit ₹60,000. Subtracting gives ₹90,000 − ₹60,000 = ₹30,000. Thus, the super profit is ₹30,000 and option A is correct. The amounts ₹60,000 and ₹90,000 are the normal and average profits respectively, not the excess. If average profit had been equal to normal profit, super profit would have been zero, but that is not the case here.