Costing Exercise

You are the Product Manager for your company. Below I will list the FOB quotes by style from various factories around the world and you have to calculate the landed duty paid price per style. Use the template I have uploaded on Bb. Please note that all of the percentages (eg agent fee%) are calculated as a percentage of the FOB. So in the first example ABC123 the agent% is calculated by multiplying $2.10 by 7% which = $0.15. Use the same process for duty and miscellaneous charges.

Style# Description Country Agent% FOB Quote

ABC123 100% Cotton T-shirt Pakistan 7 $2.10

ABC123 100% Cotton T shirt Mexico 0 $3.12

ABC124 100% Cotton Tank China 5 $1.46

ABC124 100% Cotton Tank Pakistan 7 $1.20

ABC125 Silk knit top India 8 $4.63

ABC125 Silk Knit top China 5 $5.24

ABC128 Cotton Polo Pakistan 7 $4.20

ABC128 Cotton Polo Mexico 0 $5.40

ABC129 Cotton Shorts China 5 $4.38

ABC129 Cotton Shorts Pakistan 7 $4.59

ABC130 Cotton Henley shirt Mexico 0 $4.80

ABC130 Cotton Henley shirt Pakistan 7 $3.35

ABC142 Cotton Jacket China 5 $11.15

ABC142 Cotton Jacket USA 0 S13.60

Please assume the following:

Freight from China and Taiwan is $0.35 per unit, India and Pakistan is $0.44 per unit.

Freight from USA/Mexico is $0.12 per unit

The miscellaneous charges are to be calculated at 12% of the FOB amount except for the US and Mexico where it should be 4% of FOB value.

Cotton knit shirts (except T shirts and tanks) Henleys/Polos 20.0%

Cotton T-shirts and Tanks 17.4%

Silk knit tops 1.4%

Cotton slacks and shorts 15.3%

Cotton outerwear 16.1%