Overheads included before pricing: A trader buys goods for ₹ 150. Overhead expenses are 12% of the cost price. At what selling price should he sell to earn a 10% profit (on total cost including overheads)?

Introduction / Context:
When overheads are specified as a percentage of cost, include them in the effective cost before applying the profit target. Profit percentage is always computed on the full cost base in such questions unless stated otherwise.

Given Data / Assumptions:

• Base cost = ₹ 150.
• Overheads = 12% of cost.
• Desired profit = 10% on total cost (cost + overheads).

Concept / Approach:
Total cost T = CP + overheads. SP = T * (1 + 0.10).

Step-by-Step Solution:
Overheads = 0.12 * 150 = ₹ 18Total cost T = 150 + 18 = ₹ 168SP = 168 * 1.10 = ₹ 184.80

Verification / Alternative check:
Margin = 184.80 − 168 = 16.80, which is 10% of 168, confirming the outcome.

Why Other Options Are Wrong:

• ₹ 185.80 / ₹ 187.8 / ₹ 188.80: each implies a profit% different from the target 10% on the correct total cost.

Common Pitfalls:

• Applying 10% on the base cost (₹ 150) rather than on total cost (₹ 168).

Final Answer:
₹ 184.80