DB3 Cost Price and Viability v12 - Assignment

.xlsx

School

Kirinyaga University College (JKUAT) *

*We aren’t endorsed by this school

Course

6016

Subject

Finance

Date

Nov 24, 2024

Type

xlsx

Pages

5

Uploaded by DeaconPower11250

Report
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
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help
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