Super Profit Formula: \[\text{Super Profit} = \text{Actual Profit} - \text{Normal Profit} \]Given:
- Super Profit = ₹ 4,00,000
- Average Profit = ₹ 5,00,000
This implies Normal Profit = ₹ 1,00,000.Calculation of Capital Employed using Normal Profit:\[\text{Capital Employed} = \frac{\text{Normal Profit}}{\text{Normal Rate of Return}} = \frac{1,00,000}{10%} = ₹ 10,00,000\]Alternatively, calculating Capital Employed using Average Profit and Super Profit:\[ \text{Capital Employed} = \frac{\text{Average Profit} - \text{Super Profit}}{\text{Rate of Return}} = \frac{5,00,000 - 4,00,000}{10%} = \frac{1,00,000}{0.10} = ₹ 10,00,000 \]Both methods yield ₹ 10,00,000 for Capital Employed. The initial assumption that the correct answer is ₹ 50,00,000 appears to be incorrect based on these calculations.Revisiting the calculation for Normal Profit:\[ \text{Super Profit} = \text{Average Profit} - \text{Normal Profit} \implies 4,00,000 = 5,00,000 - \text{Normal Profit} \Rightarrow \text{Normal Profit} = 1,00,000 \]Recalculating Capital Employed:\[ \text{Capital Employed} = \frac{\text{Normal Profit}}{\text{Rate of Return}} = \frac{1,00,000}{10%} = ₹ 10,00,000 \]Therefore, Capital Employed is ₹ 10,00,000. This indicates that the correct answer is option (D), not (C).
Final Answer: ₹ 10,00,000