Subscribe to our YouTube channel for the latest videos, updates, and tips.
Home | About Us | Contact Us | Privacy | Math Blog
Overhead Charges
The overhead charges become a part of the cost price.
Suppose a person buys some goods from California for $4500 and sells them in New York for $5700; it seems as the person has made a profit = $5700 - $4500 = $1200
So, does he actually gain $1200 on this transaction?
It is not true because the person must have definitely spent some money on:
(i) his travelling from New York to California and then back to New York;
(ii) transportation of the goods bought, etc.
Because of these extra expenses (which is known as overheads), the actual profit made by the person becomes less than $1200. Sometimes, he may even have loss in such a transaction if the overhead expenses exceed $1200.
Cost price (C.P.) = Payment made while purchasing the articles + overhead charges (i.e. extra expenses).
Solved
example to calculate overhead charges:
1. Mike buys some electronic goods from a wholesaler for $650 and spends $100 on its transportation's, etc. If he sells these electronic goods for $900; find the profit or loss made by him and express it as percent.
Solution:
Since, the Mike buys electronic goods for $650 and spends $100 on it transportation.
The total cost price of electronic goods for Mike = $650 + $100 = $750
Given, selling price = $900; [which is more than total C.P.]
Therefore, profit = $900 - $750 = $150
Also, profit% = (profit/total cost price) × 100%
= 150/750 × 100%
= 20%
2. A trader at Texas buys a television for $7000 from Florida and sells it in Texas for $7600. If his overhead expenses amount to $1000; find his profit or loss in this transaction and express it as percent.
Solution:
Total C.P. of the television for trader = $7000 + $1000 = $8000
Given, S.P. = $7600; [which is less than total cost price]
Therefore, loss = $8000 - $7600 = $400
Also, loss% = (loss/total C.P.) × 100%
= 400/8000 × 100%
= 5%
To find Profit or Loss when Cost Price and Selling Price are Given
To find Selling Price when Cost Price and Profit or Loss are Given
To find Cost Price when Selling Price and Profit or Loss are Given
Calculate Profit or Loss Percent
Calculate Profit and Selling Price
Calculate Loss and Selling Price
6th Grade Math Practice
From Overhead Charges to HOME PAGE
Didn't find what you were looking for? Or want to know more information about Math Only Math. Use this Google Search to find what you need.
Recent Articles
-
5th Grade Circle Worksheet | Free Worksheet with Answer |Practice Math
Jul 11, 25 02:14 PM
In 5th Grade Circle Worksheet you will get different types of questions on parts of a circle, relation between radius and diameter, interior of a circle, exterior of a circle and construction of circl… -
Construction of a Circle | Working Rules | Step-by-step Explanation |
Jul 09, 25 01:29 AM
Construction of a Circle when the length of its Radius is given. Working Rules | Step I: Open the compass such that its pointer be put on initial point (i.e. O) of ruler / scale and the pencil-end be… -
Combination of Addition and Subtraction | Mixed Addition & Subtraction
Jul 08, 25 02:32 PM
We will discuss here about the combination of addition and subtraction. The rules which can be used to solve the sums involving addition (+) and subtraction (-) together are: I: First add -
Addition & Subtraction Together |Combination of addition & subtraction
Jul 08, 25 02:23 PM
We will solve the different types of problems involving addition and subtraction together. To show the problem involving both addition and subtraction, we first group all the numbers with ‘+’ and… -
5th Grade Circle | Radius, Interior and Exterior of a Circle|Worksheet
Jul 08, 25 09:55 AM
A circle is the set of all those point in a plane whose distance from a fixed point remains constant. The fixed point is called the centre of the circle and the constant distance is known
● Profit And Loss - Worksheets
Worksheet on Calculating Profit or Loss
Worksheet on Calculating Cost Price
Worksheet on Calculating Selling Price
Worksheet on Cost Price and Selling Price
Worksheet on Calculating Profit or Loss Percent
Worksheet on Profit or Loss Percent
Worksheet on Calculating Overhead Charges
New! Comments
Have your say about what you just read! Leave me a comment in the box below. Ask a Question or Answer a Question.