Overhead Expenses Find S.P and C.P

Recap When S.P>C.P there is profit Profit = Selling price – Cost price Selling price = Cost price + Profit Cost price = Selling price – Profit When S.P<C.P there is Loss Loss = Cost price – Selling price Selling price = Cost price - Loss Cost price = Selling price + Loss

1. Formula to find selling price when profit% and cost price is given 2. Formula to find selling price when loss% and cost price is given 3. Formula to find cost price when profit% and selling price is given 4. Formula to find cost price when loss% and selling price is given

Application of Overhead Expenses Sometimes when an article is bought or sold, some additional expenses occur while buying or before selling it. These expenses have to be included in the cost price. These expenses are referred to as Overhead Expenses. These may include expenses like amount spent on repairs, labour charges, transportation, etc., Cost Price = Real Cost price + Overhead Expenses

Example 1:- Anbarasan purchased a house for Rs 17,75,000 and spent Rs 1,25,000 on its interior decoration. Find the total cost of the house. Solution Given:- Real cost price= Rs 17,75,000 Interior decoration expense = Rs 1,25,000 To Find:- Total cost of the house Cost Price = Real Cost price + Overhead Expenses = 17,75,000 + 1,25,000 = 19,00,000 Ans:- Cost of the house = Rs 19,00,000

Example 2: Kishore’s father buys an old Maruti car from a Chennai dealer for Rs 2,75,000 and spends Rs 25,000 for painting the car. And then he transports the car to his native village for which he spends again Rs 2,000. Find total cost price. Solution:- Given :- Real Cost price = Rs 275000 , Painting expense = Rs 25000 Transport expense = Rs 2,000 To Find:- Total cost price Overhead expenses = Painting expense + Transport expense = 25000 + 2000 = 27000 Cost Price = Real Cost price + Overhead Expenses = 275000 + 27000 = 302000 Ans: Cost Price = 3,02,000

To find Selling Price(S.P) we first need to find Cost Price(C.P) Example 3: Find the S.P. if a profit of 5% is made on a bicycle of Rs 700 with Rs 50 as overhead charges. Solution: Given :- Real Cost Price=Rs 700, overhead charges=Rs 50, profit%=5% To Find: S.P To find Selling Price(S.P) we first need to find Cost Price(C.P) Cost Price = Real Cost price + Overhead Expenses = 700 + 50 = 750 Ans : Selling Price is Rs 787.5

Rs 1,150 with Rs 50 as transportation charges. Example 4: Find the S.P. if a loss of 5% is made on a computer table bought at Rs 1,150 with Rs 50 as transportation charges. Solution: Given :- Real Cost Price=Rs 1150, overhead charges=Rs 50, loss%=5 To Find: S.P To find Selling Price(S.P) we first need to find Cost Price(C.P) Cost Price = Real Cost price + Overhead Expenses = 1150 + 50 = 1200 Ans : Selling Price is Rs 1140

Example5:- Raju bought a motorcycle for Rs 36,000 and then bought some extra fittings to make it perfect and good looking. He sold the bike at a profit of 10% and he got Rs 44,000. How much did he spend to buy the extra fittings made for the motorcycle? Solution Given: Real Cost price = Rs 36000 , Profit% = 10 , S.P = Rs 44000 To find : Total overhead expense To find Overhead expense we first need to find Cost Price(C.P) Cost price = Real Cost price + Overhead Expenses Overhead Expenses = Cost price - Real Cost price = 40000 – 36000 = 4000 Ans :- Overhead expense = 4000

Example6: After spending Rupees sixty thousand for remodelling a house, Amla sold a house at a loss of 20%. If the selling price was Rupees forty two lakhs, how much did she spend to buy the house? Solution Given: Overhead Expenses = Rs 60,000 ,loss%=20, S.P=Rs 42,00,000 To Find:- Cost price (C.P) To find Overhead expense we first need to find Cost Price(C.P) Cost price = Real Cost price + Overhead Expenses Real Cost price = Cost price - Overhead Expenses = 52,50,000 - 60,000 = 51,90,000 Ans :- She spend Rs 51,90,000 to buy the house

Try these 1. Find the S.P. if a profit of 5% is made on sale of a T.V of Rs 2250 with Rs 500 as overhead charges 2. Manoj repaired his old bike for Rs 7000 and sold his old bike for Rs 32000 at a loss of 20%. Find the cost price of bike.