DB3 Cost Price and Viability v12 - Assignment
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Nov 24, 2024
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FINA6016
DROPBOX 3 - EXPORT COSTING, PRICING & TRANSACTION VIABILITY
v12
Submitted to:
Katsademas
Your Role:
Tasks
Seven tasks to complete
1
Identify your group members
2
maximum of 2 members
What is your INCO term?
NAME
Student ID
One Jane Dow
1234568
Two Jane Dow
7654321
3
Incorporate the following eight parameters
Your calculations from the costing sheet will provide
into the Costing Sheet (next worksheet)
the answers to tasks 4, 5 and 6.
Note: Only the following eight entries are to be entered in the worksheet.
All other lines are to remain blank.
4
3.1
Domestic cost of LAV
$ 5,485,000 3.2
Modifications reguired in order to
Comply with EU safety standards
5
$ 3,640,000 3.3
Transportation costs (pick the method)
Pick between AIR:
$ 27,600 per flight hour
$ 192 per mile flown
Or LAND/SHIP:
$ 224 per nautical mile
$ 66 per road km
3.4
Insurance is based on
115% of CFR cost
6
with a rate of
0.075%
3.5
Freight Forwarding fees
$ 464,750.00 3.6
Import Taxes
100% of CIP cost
Based on the information you now have
with a rate of
6.510%
answer question 7.
3.7
Export Credit Insurance is based on
7
Is this a viable transaction? Explain
100% of CIP cost
with a rate of
19.470%
3.8
Profit Margin needs to be
10.1500% of Export Sales Price
You represent GDLS. GDLS is negotiating with the Republic of Lithuania the sale of the GDLS LAV700.
Complete the SEVEN tasks below. Note that Task #3 has 8 components.
Completion of these tasks allow you to:
calculate the export costs of sending the LAV700 to Lithuania
determine the export price to make the desired profit and
explain if this is a viable transaction or not depending on the selected INCO
term (Task #2)
What is your Export Cost
(in $)?
Taken into account?
What is your Profit Margin
(in $)?
What is your Export Sales Price
?
Categories Items
EXPORT COSTIN
1. Product costs Domestic Cost: Raw materials
Cost/Unit
Domestic Cost: Direct labour Units
General manufacturing expenses Sales
Modification costs
Profit
Administration Domestic financing fees COSTS
SALE PRICE
Total Product cost xxxxxxx $ - $ - Less taxes refunded 2. Costs of sales and promotion Travel expenses $ 56,444,232.00 Promotional activities Communications Translation Legal and negotiating expenses Export sales commissions Total Cost of sales and promotion
xxxxxxx $ 56,444,232.00 $ 56,444,232.00 3. Preparation for transport Labelling Export packing Marking cases Strapping costs Total COST EXW xxxxxxx $ 56,444,232.00 $ 56,444,232.00 4. Other costs of preparation for transport Consular invoices
Other documents Freight forwarders fees Insurance Total cost (ready for transport) xxxxxxx $ 56,444,232.00 $ 56,444,232.00 5. Inland transportation costs Loading charges Transport to main carriage Tailgating (maritime) Unloading charges Total COST FCA
xxxxxxx $ 56,444,232.00 $ 56,444,232.00 6. Port charges and loading Demurrage and storage Wharf charges
Loading onto vessel
Other charges Total COST FOB xxxxxxx $ 56,444,232.00 $ 56,444,232.00 7. Main carriage Freight
Miscellaneous Total COST CFR xxxxxxx $ 56,444,232.00 $ 56,444,232.00 8. Insurance coverage Insurance of goods (usually 110% of value)
Total COST CIP
xxxxxxx $ 56,444,232.00 $ 56,444,232.00 9. Unloading charges (these are usually included in the ocean freight cost) Unloading Other special charges $ 34,444.00 Storage 10. Import duties and delivery
Import taxes (duties) Broker’s fees Delivery to client Loading
Transport to main carriage Total COST DDP
xxxxxxx $ 56,478,676.00 $ 56,478,676.00 11. Export financing costs (incurred for all INCO terms)
Financial instruments ( such as letters of Credit)
Discounting charges
Export Credit insurance
Hedging of foreign exchance risk
xxxxxxx $ 56,478,676.00 $ 56,478,676.00 Export SALES PRICE
xxxxxxx $ 56,478,676.00 EXPORT COST - before profit margin
Profit margin
(as a % of export sales price
)
Your preview ends here
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NG SHEET
56,478,676 1 56,478,676 - Sale/Unit
$ - $ 56,444,232.00 $ 56,444,232.00 $ 56,444,232.00 $ 56,444,232.00 $ 56,444,232.00 $ 56,444,232.00 $ 56,444,232.00
$ 56,478,676.00 $ 56,478,676.00 $ 56,478,676.00
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E19.5 (Рg. 19-31)
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Discussion Question 1
by Najay Murray - Thursday, 21 January 2021, 12:12 AM
Number of replies: 9
Within the costing system of a manufacturing company the following types of expenses were incurred:
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Required information
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4,000
F3
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Requirement 8: Complete the Income Statement.
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Cedar River Trikes
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Income Statement
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(23
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24
249,300
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5,400
206, 100
26
Selling and Administrative Expense
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Net Income
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29
30
31 HINTS
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To
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S2
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P2
-
10%
20%
?%
S2
10%
?
30
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nal...
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Rat...
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4
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<
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Unknown
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1/4
6
Elizabeth
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1/5
7
Unknown
2.5
1/5
8
Unknown
1
1/6
9
Adam
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1/8
10
Hannah
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After entering formulas in all of the cells that contained question marks, verify that the dollar amounts in both the traditional and contribution format income statements match the numbers in Exhibit 1-7.
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Gallatin County Motors Inc. assembles and sells snowmobile engines. The company began operations on July 1 and operated at 100% of capacity during
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130,200
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Current Position Analysis
The following items are reported on a company's balance sheet:
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a. Divide current assets by current liabilities.
b. Divide quick assets by current liabilities. Quick assets are cash, temporary investments, and receivables.
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XGA company that usually sells sate x
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6 Exercises (Static)
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A company that usually sells satellite TV equipment for $50 and two years of satellite TV service for $450 has a special, time-limited
offer in which it sells the equipment for $300 and gives the two years of satellite service for "free."
If the company sells one of these packages on July 1, how much revenue should the company recognize on July 1 when it delivers the
equipment and receives the full price in cash? (Do not round intermediate calculations.)
XAnswer is complete but not entirely correct.
Sales revenue
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D2L. 7-1 Problem Set: Module Sev X
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Vertical Analysis
Income statement information for Einsworth Corporation follows:
000
101,400
Sales
Cost of goods sold
Gross profit
Prepare a vertical analysis of the income statement for Einsworth Corporation. If required, round percentage answers to the nearest whole number.
Einsworth Corporation
Vertical Analysis of the Income Statement
Amount Percentage
Sales
0008
Cost of goods sold
101,400
Gross profit
$236,600
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Divide each element by sales to determine the vertical analysis percentage.
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A company reports the following:
Sales
$1,406,700
Average total assets (excluding long-term investments)
781,500
Determine the asset turnover ratio. If required, round your answer to one decimal place.
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Divide sales by average total assets (excluding long-term investments).
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