Based on Case Study 2 data, if the normal profit were instead given as Rs. 60,000 , what would be the revised calculated Normal Rate of Return? - Accountancy MCQ CUET Accountancy 2025 13 May Shift 2 2026 | ExamTest.live

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Based on Case Study 2 data, if the normal profit were instead given as Rs. 60, 000, what would be the revised calculated Normal Rate of Return?

Solution & Step-by-step Explanation

We can rearrange the normal profit formula to find the rate of return: Normal Profit = Capital Employed \times \frac{Normal Rate of Return}{100} Given: Revised Normal Profit = Rs. 60, 000 Capital Employed = Rs. 5, 00, 000 Substituting the values to find the rate: 60, 000 = 5, 00, 000 \times \frac{Normal Rate of Return}{100} 60, 000 = 5, 000 \times Normal Rate of Return Normal Rate of Return = \frac{60 , 000}{5 , 000} = 12%

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Based on Case Study 2 data, if the normal profit were instead given as Rs. 60, 000, what would be the revised calculated Normal Rate of Return?

12%

15%

10%

14%

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