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Exercise 2 Your customer, Canadian Manufacturing Inc., would like samples imported from a new supplier in Hong Kong via air freight. The Purchasing Manager,

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Exercise 2 Your customer, Canadian Manufacturing Inc., would like samples imported from a new supplier in Hong Kong via air freight. The Purchasing Manager, Mr. John Smith, is requesting air freight rates. This is the information he provides: Chargeable weights: 550 kg and 1,000 kg. Commodity: barbeque parts (non-hazardous). Terms of sale: Your pricing desk the air freight rate. FCA air carrier Hong Kong, China to Door Toronto GTA (delivery, handling in Canada to be paid for by Canadian Manufacturing Inc. Duties and taxes to be determined once the orders are secured). provides the following buy rates and requests you add US $0.25 to Mr. John Smith wants the quotation all in USD. Exchange rate: US $1.00 = CAN $1.00 Buy rate: CHARGES CURRENCY 500 KG 1,000 KG Air freight USD $4.75/kg $3.50/kg Fuel USD $0.20/kg $0.20/kg Security USD $0.05/kg $0.05/kg ORIGIN CHARGES Pick up fee USD $0.10/kg; $0.10/kg; min. min. $50.00 Handling USD $45.00 per shipment Terminal handling charges USD $0.04/kg; min. $10.00 $50.00 $45.00 per shipment $0.04/kg; min. $10.00 DESTINATION CHARGES Handling CAD $45.00 per $45.00 per shipment shipment Terminal handling CAD $0.08/kg; min. $45.00 $0.08/kg; min. $45.00 NavCan fee CAD $0.07/kg; $0.07/kg; min. $7.00 min. $7.00 Delivery CAD $0.30/kg; min. $50.00 $0.30/kg; min. $50.00 Prepare the following: a) A cover letter/e-mail explaining your b) quote. A quotation. c) The calculations for totals for each weight break.

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