PLEASE FILL OUT ALL THE BLANKS! (DON'T NEED TO SHOW THE WORKS)

Exercise #1: Here are the specifics of your garment. Calculate the landed cost. (Note: You will have to find the correct duty rate on the last page of this handout.) Silk knit turtleneck from Singapore Fabric required for each turtleneck: 1.5 yards Fabric cost: $8.00 per yard CMT: $1.10 per turtleneck Agent's commission: 6% Freight: $.60 (by sea) Misc. charges: $.75 Fabric Cost yards @ $ Cut-Make-and-Trim per yard) $ +$ Total First Cost =$ $ Agent's Commission ( % Duty Rate ( % Freight (air or sea?) Misc. (Insurance, Finance Charge, Broker, Cartage) +$ +$ +$ Total Landed Cost =$ Now... let's see how the retail price will differ between a wholesaler's product which is sold to a retailer... and a private label product. Lets assume that this wholesaler will use a 55% markup. Let's also assume that the retailer who buys the turtleneck from the wholesaler will use a 50% markup. Using the chart on the next page, in the column on the left, calculate both the wholesale and retail prices. In the column on the right, let's see what price the same turtleneck would retail at if it were brought in by a private-label retailer using a 70% markup. For a Wholesaler: For a Private Label Retailer: Landed Cost Retail Price to the consumer (using % markup) Landed Cost $ Wholesale Price to $ the retailer (using % markup Retail Price to the $ consumer (using % markup) $ $