Calculate the export price and profit in $. Market price is $240.00 (what custom

Question

Calculate the export price and profit in $. Market price is $240.00 (what customer pays); manufacturing cost is $60.00; freight is 10% (market price); customs duty is 5.4% (market price). Calculate the export price if the distribution chain is a) exporter --- Importer----local distributor---dealer---customer (three levels before the end user); b) the importer wants 25% margin i.e., profit on their selling price to the local distributor; c) the local distributor wants 20% margin (profit on their selling price to the dealer), d) the local dealer wants 30% margin (profit when selling to the end user, i.e., the customer.

Explanation / Answer

Particulars Amount($) Manufacturing cost 60 Add: Frieght 24 Add: Customs Duty 12.96 Cost to exporter 96.96 Particulars Amount($) Market price 240 Local Dealer margin 72 Distributor price 168 Local Distributor magin(240-72)*0.20 33.6 Importar price 134.4 Impoerter magin $134.4*0.25 33.6 Exporter price 100.8 Less: Cost 96.96 Exporter magin 3.84

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