Question

Find the selling price if C.P is Rs. 352, overheads are Rs. 28 and profit is 20%

Answer 1

Hint: We first find the total cost price adding the value of 352 and the price of overheads. We apply the profit of 20% on the total value. We find the selling price by using appropriate formulas.

Complete step by step solution:
We have been given the cost price, overhead and profit for a particular goods.
The cost price and the overhead will be added to find the total money spent or required to make the thing available for selling.
The total would be the sum of 352 and 28 which is $ 352+28=380 $ .
Let us assume the price of any particular thing as $ x $ . We have y% hike or profit on the price. Then the final price after hike becomes
 $ \Rightarrow x\left( 1+\dfrac{y}{100} \right) $ .
In case of price discount, we will use the binary operation of subtraction instead of addition. The formula changes to
 $ \Rightarrow x\left( 1-\dfrac{y}{100} \right) $ .
In case of this thing where the main price is 380 and profit is 20%, we can find the selling price using the formula of
 $ \Rightarrow x\left( 1+\dfrac{y}{100} \right) $ where $ x=380,y=20 $ .
So, the selling price is
 $ \Rightarrow 380\left( 1+\dfrac{20}{100} \right)=380\times \dfrac{6}{5}=456 $ .
The selling price is 456 Rs.
So, the correct answer is “456 Rs.”.

Note: Overhead expenses are all costs on the income statement except for direct labour, direct materials, and direct expenses.
Operating expenses are required to run the business and cannot be avoided.