Tag: profit and loss with overhead expenses

Questions Related to profit and loss with overhead expenses

Choose the correct answer from the alternatives given :
Mr. Ram runs a clothing store. His overhead expenses are 32% and his profits are 12% of his sale. At what price should he sell a raincoat which costs him Rs. 10.50 ?

maths comparing quantities using proportion overhead expenses introduction to total cost price of the article profit and loss with overhead expenses

  1. Rs. 13

  2. Rs. 15.52

  3. Rs. 12

  4. Rs. 19

Show answer
Correct Option: B
Explanation:
Cost price of umbrella $=Rs.10.50$
    overhead expenses $=32$% $=0.32$
            Required profit $=12$% $=0.12$
So, Selling price of umbrella $=Rs.10.50\times 1.32\times 1.12$
                                                $=Rs.15.52$
So, selling price $=Rs.10.50\times 1.32\times 1.12$
                           $=Rs.15.52$.