. The formula for the average profit method is
A. Total Profits ÷ No. of years
B. Super Profits - Normal profit
C. Super profits × No. of years
D. Super profits ÷ Normal profit
Best Answer
Correct Option is: (A) Total Profits ÷ No. of years
Explanation:
Average profit is the total profit which is earned by the firm during the previous years, divided by the total number of years.
The formula for calculating for average profit is:
Average Profits = Total profits ÷ No. of years
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