Answer 1. As mentioned above there are 50 boxes to a pallet and each box contain

Question

Answer 1. As mentioned above there are 50 boxes to a pallet and each box contains 1 foil bag of mango concentrate. One foil bag contains 50 pounds of mango concentrate. So there is 2500 pounds of mango concentrate per pallet.

Answer 2: As mentioned above each TEU holds 10 Pallet. So there is 25000 pounds of mango concentrate per TEU.  

Answer 3: As mentioned above each truck can be loaded with 4 pallet per load. So there is 10000 pounds of mango concentrate per truck per load.

Answer 4: Original unit cost- $2.79/pound

Truck to port fee:- $ 0.012 (The truck charges to move one pallet is $30 per trip. there are 4 pallet, that is 10000 pounds of mango concentrate. so that will be 120 / 10000 = $0.012  

Load TEU fee:- $0.124 ( It takes $1550 per TEU to load. 1 TEU holds 10 pallet, that is 25000 pounds of mango concentrate. Hence cost per pound= 1550/25000= $0.062. Papa Growers ships two containers so $0.124 )

Ocean Frieght Shipping Charge:- It costs $ 17500 to ship one TEU container. So two TEU container would cost $ 35000. that is 50000 pounds of mango concentrate. so the cost per pound is $0.7

Hence the total cost of per pound of mango concentrate when it is delivered to the Port of long beach, California= 2.79+ 0.012 + 0.124 + 0.7 = $ 3.62.

Explanation / Answer

TOTAL LANDED COST Consider the following scenario.. Joyce Johnson is a senior product manager for International Fruit Distributors (IFD), a major U.S based food-processing company, based in Long Beach, California. IFD sells a wide variety of fruit concentrates, flavors, and extracts found in many popular food products. One of Joyce's responsibilities is to negotiate annual purchase contracts for fresh fruit extracts. One of her larger contracts is for mango concentrate, which comes from fruit grown and harvested on a seasonal basis in various countries around the world. Through demand forecasting techniques, International Fruit Distributors estimates that demand for mango concentrate is relatively constant throughout the year Recently, Joyce was examining the costs associated with one of her suppliers, Papa Growers, a Philippine mango grower and processor. International Fruit Distributors has used this supplier's high-quality product for a number of years. Papa Growers provides a unique variety of mango, world renowned for its flavor. Access to this grower gives IFD a competitive advantage over other distributors in the food processing industry Papa Growers has plantations in remote sectors of the Philippines and transports the harvested fruit in company trucks to a processing plant where it is cleaned, pureed, concentrated, and packaged for transoceanic shipment. The Philippine processing plant packages the mango concentrate (currently priced at $2.79/pound) in large sealed foil bags, each containing 50 pounds of product. The processor then places the foil bags in specially designed cardboard boxes for protection and shipping. There is one bag per box. The cardboard boxes are stacked on wooden pallets, 50 boxes to a pallet. The product moves to a portside facility by truck, which can only carry four pallets per load, at a cost of $30 per pallet per trip. At the port-side facility, the pallets are loaded into climate-controlled refrigerated overseas containers. These metal shipping containers are called TEUs (Twenty Foot Equivalent Units), since they are roughly twenty feet long by eight feet wide by eight and a half feet tall

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