THE SHUT DOWN POINT, NORMAL PROFIT AND BREAK EVEN POINT OF THE FIRM

TRUE/FALSE TYPE QUESTIONS: A pilot looping a vertical loop does notfall down even at the highest point.

Co Normal Points

The net assets of a firm including fictitious assets of Rs 5,000 are Rs 85,000. The net liabilities of the firm are Rs30,000. The normal rate of return is 10% and the average profits of the firm are Rs8,000. Calculate the goodwill as per capitalisation of super profits.

Normal to Parabola and Co-Normal Points

The super profits of a firm are Rs. 14,000. If the normal rate of return is 7%, calculate the amount of goodwill by super profit capitalisation method.