Aranda Company is an import-export company that relocated earlier this year in a foreign trade zone (FTZ) in a southwestern city. The company imports $760,000 of fabric fro overseas for resale to clothing companies located in the United States. Aranda purchases and receives the fabric about four months before it is sold and shipped to customers; customers are billed and pay in two months. Duty is assessed at 15 percent of cost, and Aranda faces a 6 percent carrying cost. Required: 1. What is the amount of duty paid by Aranda last year (before locating in the FTZ) and for this year after relocating to the FTZ? Last Year This Year 114,000 Duty 114,000 2. What is the amount of carrying cost associated with the duty paid by Aranda last year and for this year after relocating to the FTZ? This Year Carrying cost of duty Last Year 3,420 114,000 X 3. What is the total duty-related cost for Aranda last year and for this year after relocating to the FTZ? Total duty-related cost Last Year 117,420 This Year 0X 4. What is the total savings on duty and carrying cost attributable to locating in an FTZ? 120,840 X