Question

on which amount the overhead charges are added, CP or SP

Answer 1

Answer: The overhead charges are added on CP (Cost Price).

Step-by-step explanation:

The extra spent money are called as the overhead charges.

Let a person buys a thing from X city for 500 Rupees. The person sell the same item in Y city for 800 Rupees.

It seems like that he had earned a profit of 300 rupees. But that profit money are consumed in travelling from X city to Y city. Therefore, the cost price is equal to buying a thing + overhead charge (traveling expense).

Answer 2

Answer:

the overhead charges are always added to the Cost Price (Cp)