Question
Simon is comparing prices for an order for 324 bicycles from three (3) different Australian suppliers. (The 324 bicycles will fill a 20-foot container.) The
Simon is comparing prices for an order for 324 bicycles from three (3) different Australian suppliers. (The 324 bicycles will fill a 20-foot container.) The problem is that the three (3) firms have not quoted prices the same way. Firm A quoted EXW Murray Bridge, Australia at $123.80 each. Firm B quoted FOB Port Adelaide, Australia at $126.50 each. Firm C quoted CIF Port of Vancouver, Canada at $129.20 each. He is trying to compare the three prices and figure out what he is getting under each of the three terms. Hauling the container from the factory in Murray Bridge, Australia to the container port at Port Adelaide, Australia, and getting it loaded onto the ship will cost $900 (The current exchange rate is $0.90. At the moment the CAD is worth more than the AUD.) Ocean freight from Port Adelaide, Australia to the Port of Vancouver, Canada is $990 per 20-foot container. For a shipment of this value, insurance is $204. Which supplier offers the best deal?
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