From the previous topic of overhead expenses we have learnt about overhead expenses that these are the expenses which the trader or dealer has to pay for maintenance, transportation, etc. for the products that they buy from retailer.
Now, let us solve some examples based on the application on of overhead expenses:
1. A trader from India purchases a washing machine at a price of Rs9,000 and pays Rs1,500 on its maintenance and transportation. He then sells it for Rs12,000 to a customer. Find the profit/loss faced by him. Also, find the percent for the same
2. A trader from Canada buys 2 television sets for $1000 and $1500 respectively. He spends $100 on the overall transportation of the sets. He then sells them in Canada for $1,500 and $1,200 respectively. Find the overall profit/loss faced by the trader. Also, find the percent for the same.
3. A trader from Sydney buys some products from New York at price of $25,000 and takes them back to Sydney by paying $1,000. There he sells them for $28,000. Find the overall profit/loss faced by the trader. Also, find the percent for the same.
4. A shopkeeper buys 15 books for Rs200 each and the overhead expenses were Rs50 per book. If he makes Rs20 profit on each book. Determine the selling price of each book.
5. A trader buys 20 electronic gadgets for $100 each. He spends $5 as overhead expenses for each gadget. He faces a loss of $10 on each of these gadgets. Determine the selling price of each gadget.
6. A shopkeeper bought books for $500 and spent $5 on their packaging. He sells them for $600. Find the profit/ loss percent faced by him.
7. A trader from US bought some appliances for $20,000. He spends $500 on its transportation. He sells them at a profit of 10%. Find the selling price and profit gained by the trader.
8. A shopkeeper purchases some products from a retailer for Rs50,000. He spends Rs1,500 on the maintenance of the products. He then sells them for Rs55,000. Determine the profit/loss. Also, find the percent for the same.
Answers for the worksheet on the application of overhead expenses are given below:
1. Profit = Rs 1,500
Profit percent = 14.28%
2. Profit = $100
Profit percent = 3.84%
3. Profit = $2,000
Profit percent = 7.69%
4. Profit = Rs 300
Profit percent = 8%
5. Selling price = $95.
6. Profit = $95
Profit percent = 18.81%
7. Selling price = $22,550
Profit = $2050
8. Profit = Rs 3,500
Profit percent = 6.79%