The paid out cost of a farmer is Rs. 500 and fixed cost is Rs. 250. If the gross returns from farm business is Rs. 3700, the capital turn over would be

Solution (By Examveda Team)

First, let's understand the key terms:
* Paid-out cost: This is the actual money the farmer spends. In this case, it's Rs. 500.
* Fixed cost: These are costs that don't change with the level of production. Here, it's Rs. 250.
* Gross returns: This is the total revenue the farmer gets from the farm business, which is Rs. 3700.
* Capital turnover: This ratio shows how efficiently a business uses its capital to generate revenue. It's calculated as Gross Returns / Total Cost.

Now, let's calculate the total cost:
Total Cost = Paid-out Cost + Fixed Cost = Rs. 500 + Rs. 250 = Rs. 750

Next, calculate the capital turnover:
Capital Turnover = Gross Returns / Total Cost = Rs. 3700 / Rs. 750 = 4.93

Therefore, the capital turnover is 4.93.

So, the correct answer is: Option C: 4.93