Question

As a boy toys worth rupees 75000 for his toy shop. He sent some money on transportation, rent for shop, and the salary for the salesman. If he made a profit of 10% on his real expenses( cost+ overhead expenses), was rupees 9000, calculate his overhead expenses.

Answer 1

Let the overhead expenses be Rs X.
Cost = 75000
Then real expenses will be cost + overhead expenses = 75000 + X
The profit he got was 10 percent of real expenses which is 10% of 75000+X.
Given that profit=Rs 9000

=> (10/100) *(75000+X) = 9000
=> 75000 + X = 9000 / (10/100)
=> 75000 + X = 9000 * 100/10
=> 75000 + X = 90000
=> X = 90000 - 75000
=> X = 15000

Hence overhead expenses = Rs 15000

Hope this helps :)