Question
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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