1. Overhead Expenses
Find S.P and C.P

2. 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

3. 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

4. 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

5. 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, ,25,000 = 19,00,000
Ans:- Cost of the house = Rs 19,00,000

6. 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 , Painting expense = Rs 25000
Transport expense = Rs 2,000
To Find:- Total cost price
Overhead expenses = Painting expense + Transport expense
= = 27000
Cost Price = Real Cost price + Overhead Expenses
= =
Ans: Cost Price = 3,02,000

7. 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
= = 750
Ans : Selling Price is Rs 787.5

8. 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
= = 1200
Ans : Selling Price is Rs 1140

9. 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 , 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
= – = 4000
Ans :- Overhead expense = 4000

10. 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 = 51,90,000
Ans :- She spend Rs 51,90,000 to buy the house

11. 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 at a loss of 20%. Find the cost price of bike.