A distributor in Melbourne imports basmati rice in bags from India. The agreed Incoterm is CFR Melbourne (INCOTERM 2020) and the quoted price is USD 1700/ton (called the L/C value). The distributor wishes to import 100 tons. The product will be shipped in containers with each container holding 20 tons.

The Australian Customs impose the import tariff of 10% of the L/C value which the distributor needs to pay. Other additional costs that the distributor needs to take into account are as follows:

Transporting from Melbourne Port to the distributors warehouse in Dandenong: AUD 500 per truck (each truck can carry 20 tons of cargo). The current exchange rate is: 1 USD = 1.5 AUD.

The estimated insurance cost for this shipment is 2% of the L/C value.

Question : Help the distributor to calculate the break-even price (the base price that the distributor can use to sell the goods to the retailer) per ton in USD (showing all working steps), knowing that 0.5% of the cargo in terms of volume has been lost during transport and handling.