Question

Mike buys some electronic goods from a wholesaler for Rs. 650 and spends Rs. 200 on its transportation's, etc. If he sells these electronic goods for Rs. 900; find the overhead expenses spent by Mike. and find profit.

• A. Rs.650, Rs. 50
• B. Rs. 900, Rs. 150
• C. Rs. 200, Rs.50
• D. Rs .850 , Rs.100

Answer 1

The correct option is C Rs. 200, Rs.50

The overhead charges become a part of the cost price.
So, Rs. 200 is a overhead expenses spent by Mike.

Total CP = Rs. 650+ Rs. 200 = Rs 850

SP > CP

hence Profit = SP - CP = 900 - 850 = Rs. 50