5. What are the 1. Under the price of USD25, 5/dozen CFR Rotterdam BB Company signed a contract to se 1 000 dozen of T-shirt. The T-shirt was purchased from factory by RMB135/dozen. BB Company calulated 3% of its product purchasing price as its overhead costs. The local transport and customs formalities took RMB2 500 and the container ocean freight was V. Case studies USDI 500. If the bank exchange rate was IUSD/6. 5RMB, what would be the profit margin for this deal? And what about its export cost for foreign exchange? 2. The price quoted by a Shanghai exporter was "USDI 200 per M/T CFR Liverpool". The buyer requested a revised FOB price including 2% commission. The freight for Shanghai. Liverpool was USD200 per M/T. To keep the export revenue constant, what would be FOBC2% price? expon 3. AC Company offered to sell goods at "USD100 per case CIF New York". The importer requested a revised quote for CFRC5%, The premium rate for insurance was 1.05% and mark-up for insurance was 10%, To get the same export revenue, what would be AC's new offer? SDB Company offered to sell goods at "USD2 000 per M/T CIF Toronto with all risks" and 'war risk' for 110% of the value", The importer requested a revised quote for FOB Guangzhou. The freight for Guangzhou-Toronto was USD50 per M/T, and the premium rates for "all risks" and "war risk" were 1% and 0. 2% respectively. To get the same export revenue, what FOB price should the exporter offer? 5. The price quoted by an exporter was " USD450 per case FOB Shanghai". The importer requested a revised quote for CIF Auckland. If the freight was USD50 per case, 110% of the value was to be insured, and the premium rate for insurance was 0. 8%, what would be the new price? X Company signed a contract to export two machines at an initial price (P) of USD5 million each. At the time of setting P, the material price index (M,) was 110, the wage index (W) was 120. The contract contained a price revision clause that allowed the final price to be set on delivery. At the time of delivery, the material price index (M) was 112, and the wage index (W) became 125. If the following ratios remained constant; Export Price 79 A ( the management fee and profit as a percentage of the price) = 15% B (material cost as a percentage of the price) = 30% C (wage cost as a percentage of the price) = 55% What is the final price (P)? On Nov. 20th, Lee Co. offered to sell goods to Dee Inc. at USD500 per case CIF On Nov. 22 nd Dee cabled back, "Offer London, "Offer valid if reply here 27/11. accepted if USD480 per case. over USD500. On Nov. 25 th, Dee cabled an unconditional acceptance of Lee's initial As Lee was considering the bid, the market price went offer. Could Lee reject Dee's acceptance? 8. X offered to sell goods to Y, "Shipment within 2 months after receipt of L/C, offer valid Two days later, Y cabled back, "Accept your offer shipment if reply here 5 days. immediately. " X didn't reply. Two more days later, X received Y's L/C requirine immediate shipment. At this time, the market price of the goods went up by 20%. What options did X have to deal with Y? et