Question

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

Answer 1

Let the overhead charges be 'x'

C.P of toys is Rs.75000

With overheads it becomes 75000+x Rs

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

Profit
= 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

Hope it helps.

Answer 2

Cost price of toys = Rs. 75000
Let 'x' be the overhead expense.
Then,
Real expense = Cost + Overhead expense
Real expense = Rs. (75000 + x)
We have to find the value of 'x' .
According to the condition given in the question,
10 % (Real expense) = 9000
10 % (75000 + x) = 9000
10/100 (75000 + x) = 9000
1/10 (75000 + x) = 9000
75000 + x = 9000 x 10
75000 + x = 90000
x = 90000 - 75000
x = 15000
which shows that the overhead expense is Rs. 15000
Hope it helps you. Thanks.