Question

Azad bought toys worth rupees 75000 for his toy shop. He spent some money on transportation, rent for his shop, and salary for the salesman . If he made a profit of 10% on his real expenses (cost+overhead expenses) which were rupees 9000 calculate how overhead expenses.

Answer 1

​​​​​Let the overhead charges be 'x'
C.P(cost price) of toys is Rs.75000

With overheads it becomes 75000+x Rs

S.P(Selling Price)=(C.P+Overheads)+ Profit

Profit
=%profit*(C.P+ overheads )
=10/100*(C.P+overheads)
= 0.1*(C.P+Overheads)
= 0.1*(75000+x) rs

Given that profit is 9000 rs
=> 0.1(75000+x) = 9000
=> 75000+x = 9000/0.1
=> 75000+x = 90000
=> x = 90000 - 75000
=> x = 15000 rs

The cost of overheads is Rs.15000