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A Canadian company is preparing an offer for one of his customers abroad to sell Canola Oil for human consumption. Considering the following information, please

A Canadian company is preparing an offer for one of his customers abroad to sell Canola Oil for human

consumption.

Considering the following information, please prepare the company's cost sheet.

a)Quantity: 30,000 MT in bulk

b)Exchange rate: US $1.00 = CAD $1.30

c) Cost Ex-warehouse: CAD$1,150 per MT

d)Trucking (freight to dock): CAD$50 per MT

e) Wharf age and handling: CAD$25 per MT

f) Finance charge: 2.5%

g)Profit margin: 5%

h)Agent's Commission: 1% of the Cost Ex-warehouse

i)Ocean freight: US$600,000 for the total shipment

j) Marin insurance: 1% on 115% of the C&F value

Please, use the attached cost sheet to make your calculations; show all calculations with 2 decimal.

Round your final answer to the nearest dollar amount; then, round the final price to the nearest $5 amount.

Cost Sheet for Per MT of Canola Oil for Human Consumption

Costs

CAD$

Cost

US$

Cost

Calculations

A.Cost [EXW] Ex-warehouse

$1,150

B. Trucking (freight to dock)

$50

C. Cost to Dock

$1200

C= A+B=$1150+$50

D .Wharf age and Handling

$25

E. Cost FAS (beside vessel)

$1225

E=C+D=$1200+$25

F .Finance Charge

$30.62

F= E*Rate=$1225*0.025

G .Profit Margin

$62.78

G= (E+F) *Rate = ($1225+30.625) *0.05

H. Agent's Commission

$11.5

H=(cost(RWX)*1%

(1150*1%=11.5)

I.Price FAS

$1329.9

I= (E+F+G+H) = ($1225+$30.62+ $62.78+11.50)

J. Convert to US$

(move to new column)

$1023

J= I/Rate of exchange= $1329.9/$1.30

K .Ocean Freight

$20

$600,000/ 30,000=20

L. Price [CFR] C&F

$1043

L= J+K=$1023+$20=1043

M. Marine Insurance

$11.99

M= L*1.15*0.01

$1043*1.15*0.01

N. Total CIF

$1054.99

N=L+M= $1043+ 11.99

Rounded to the nearest US$

$1055

Rounded to the nearest US$5

$1055

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