3. The ABC exporting Company quoted a price USD 800 M/T CIFC2% Mumbay. If the freight costs is USD 80 per M/T, and insurance premium is USD 5 per M/T, the purchasing price of the product is RMB 1200 Yuan per M/T, the domestic direct and indirect costs per M/T will be account for 15% of purchasing price per M/T, please calculate the total costs of export, the net income from the export and the exporting conversion cost of foreign exchange. If the current exchange rate is 6.5 RMB/USD, is it profitable from the export?
3. The ABC exporting Company quoted a price USD 800 M/T CIFC2% Mumbay. If the freight costs is USD 80 per M/T, and insurance premium is USD 5 per M/T, the purchasing price of the product is RMB 1200 Yuan per M/T, the domestic direct and indirect costs per M/T will be account for 15% of purchasing price per M/T, please calculate the total costs of export, the net income from the export and the exporting conversion cost of foreign exchange. If the current exchange rate is 6.5 RMB/USD, is it profitable from the export?
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter6: Managing In The Global Economy
Section: Chapter Questions
Problem 7E
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Question
![3. The ABC exporting Company quoted a price USD 800
M/T CIFC2% Mumbay. If the freight costs is USD 80
per M/T, and insurance premium is USD 5 per M/T,
the purchasing price of the product is RMB 1200 Yuan
per M/T, the domestic direct and indirect costs per
M/T will be account for 15% of purchasing price per
M/T, please calculate the total costs of export, the net
income from the export and the exporting conversion
cost of foreign exchange. If the current exchange rate
is 6.5 RMB/USD, is it profitable from the export?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6193abcc-7a0d-4cf2-a4bd-fba03b3cd85d%2F461f5d78-789b-4750-a4ec-225b1d2afbb0%2Fwcrceer_processed.jpeg&w=3840&q=75)
Transcribed Image Text:3. The ABC exporting Company quoted a price USD 800
M/T CIFC2% Mumbay. If the freight costs is USD 80
per M/T, and insurance premium is USD 5 per M/T,
the purchasing price of the product is RMB 1200 Yuan
per M/T, the domestic direct and indirect costs per
M/T will be account for 15% of purchasing price per
M/T, please calculate the total costs of export, the net
income from the export and the exporting conversion
cost of foreign exchange. If the current exchange rate
is 6.5 RMB/USD, is it profitable from the export?
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