Dear Buyer, The R&D department of Eglinton Ave bikes has given you all 38 (thirty eight) parts in their new bicycle. After careful consideration with the Research, Budgeting and Supply Chain, you are given the task of procuring all the items. After months of research and negotiation you have found 38 reliable suppliers who can provide you the parts from over 12 countries. Your mission is to analyze the price, find out the tariff list and come back to Management with the price that they need to sell it to the retailer. Eglinton Ave would like a 25% margin on the bike. They have spoken with the Finance/Accounting department which has allocated $45,000 dollars for this project. CFCE located in Oshawa, Ontario Canada. (8,000SqFt Facility mix use office/warehouse/plant) Total Employees: 18/Total Profits (2015): $5.1 Million CDN

Basic Modern Road Bike Component Identification Guide 1. Brake Levers (CHINA)1.50 2. Cassette (CHINA) 3.50 3. Chain (CHINA) 2.25 4. Chain Stays (CHINA)2.50 5. Chainrings (CHINA) 3.50 6. Crank arm (CHINA) 0.75 7. Down tube (HAITI) 2.34 8. Fork (CHINA) 1.90 9. Front brake calipers (PRC TAIWAN) 3.00 10. Front derailleur (THAILAND) 3.00 11. Front hub (CHILE) 2.25 12. Front quick-release skewer (CHINA)1.50 13. Front tire (CHINA)1.90 14. Front wheel (CHINA) 3.25 15. Handlebars (CHINA) 5.50 16. Head tube (KOREA) 2.25 17. Headset (INDIA) 2.50 18. Headset top cap & bolt (INDIA) 0.50 19. Headset spacers (CHINA) 5.00 20. Inner tube valve (SPAIN) 2.00 21. Pedals (USA) 10.00 22. Rear brake calipers (CHILE) 5.40 23. Rear derailleur (CHINA) 3.75 24. Rear hub (COSTA RICA) 2.25 25. Rear quick-release skewer (PERU) 5.50 26. Rear tire (CHINA) 2.80 27. Rear wheel (CHINA) 1.90 28. Removable face plate (KOREA) 2.25 29. Saddle (CHINA) 2.50 30. Seat collar (JORDAN/ISRAEL [Trade Zone]) 0.80 31. Seat post (CANADA) 0.95 32. Seat stays (CHINA) 0.50 33. Seat tube (CHINA) 1.50 34. Spokes (USA) 3.25 35. Stem (CANADA) 2.25 36. STI/Ergo shift levers (CANADA) 3.10 37. Top tube (USA) 4.00 38. Water bottle bosses (CANADA) 0.40

II. It was announced on August 14, 2021 that Prime Minster Justin Trudeau has slapped a 20% tariff on all items related to bicycles originating from Mainland China and its provinces. Justin has taken the initiative after a backlash by the Canadian Bike Association. C.B.A complained about competition from foreign manufacturers. He also announced on that day that AGOA, ATPDEA, CBTPA, HOPE/HOPE II and HELP will be renewed until March 2025 under Tariff Preferential Treatment Programs (TPP) III. Under the North American Industry Classification System (NAICS) , Pedal units, regardless of origin are taxed under NAFTA at $0.10 a unit. IV. Under the agreement that was made in 2010 with Laos, Thailand, Vietnam, India, Bangladesh, Cambodia, Burma, Pakistan, Sri Lanka bike parts such as Rear Hub, Rear derailleur, Front Hub, Front derailleur are tariff free for importing to Canada.

V. On August 15, 2022, Prime Minister Justin Trudeau has announced subsidies that will go into effect immediately to help stimulate the economy for the end of the year and help local manufacturing sector rebound from a devastating year in 2022. The Federal government has agreed to subsidize 38.46% percent of the domestic worker pay in order to improve economic production for 2022. VI. In Ontario, Premier Doug Ford has heard about the news of Prime Minister Trudeau's federal economic stimulation plan for the manufacturing sector and effective September 1, 2022 has agreed to compete with the same amount that the federal government subsidy program has allocated for the local manufacturing sector. VII. Because of a recent spat with the Indian government, all items related to transportation (including bikes) which are not part of the 2010 pact are added 3.75% tariffs

task: 1) You need to produce 300 units of the bike. 2) For Production, you need 10 men on the assembly line. Each making $26/hr. 3) You will need 10 production days to produce this item. (30 bikes per day). 4) You have all the manufacturing machines and tools. 5) Rent for the plant cost $3200/month. Utilities are included (heat, water, gas, internet) 6) Cardboard box and foam for each unit cost 0.95$ BONUS!!!!!!!!!!! i) A distributor in Austin, Texas(USA) named Bikes'R'Us has sent you a PO for 10 units. You quote him at factory price. What is the total amount that you will be making after you convert from USD to CAD? Assume Shipping will be $560 for one pallet FTL from:

Toronto, Ontario to Austin, Texas.