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An exporter offered a price by USD 500 M/T CIF New York. If the freight costs is USD 30 per M/T, and insurance premium is USD 2 per M/T, the purchasing price of the product is RMB 3000 per M/T, the domestic direct and indirect costs per M/T will be account for 15% of purchasing price, please calculate

An exporter offered a price by USD 500 M/T CIF New York. If the freight costs is USD 30 per M/T, and insurance premium is USD 2 per M/T, the purchasing price of the product is RMB 3000 per M/T, the domestic direct and indirect costs per M/T will be account for 15% of purchasing price, please calculate

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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An exporter offered a price by USD 500 M/T CIF New York. If the freight costs is USD 30 per M/T, and insurance premium is USD 2 per M/T, the purchasing price of the product is RMB 3000 per M/T, the domestic direct and indirect costs per M/T will be account for 15% of purchasing price, 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 7.5 RMB/USD, is it profitable from the export?
Transcribed Image Text:An exporter offered a price by USD 500 M/T CIF New York. If the freight costs is USD 30 per M/T, and insurance premium is USD 2 per M/T, the purchasing price of the product is RMB 3000 per M/T, the domestic direct and indirect costs per M/T will be account for 15% of purchasing price, 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 7.5 RMB/USD, is it profitable from the export?
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