The breakdown of possible points is as follows:

Fabric Cost Formula = 1 point

Fabric Cost Answer = 1 point

FOB Formula = 2 points

FOB Answer = 1 point

Duty Formula = 1 point

Duty Answer = 1 point

LDP Formula = 2 points

LDP Answer = 1 point

Problem: You are an assistant product developer at Kohl's, men's department. Your manager is sourcing men's dress poly-cotton shirts from a new full-package factory in Vietnam and asked you to calculate FOB and LDP prices. The factory can order, purchase, deliver and inspect the fabric you want at a cost of $2.50 per yard. Each shirt requires 1.2 yards. The factory quoted CMT price of $2.00 per shirt. Men's woven poly-cotton shirts from Vietnam are subject to 19.8% duty on the full FOB price. Shipping shirts from the factory to the U.S. costs $0.30 per piece. And finally, custom clearance and inland transportation to the Kohl's distribution center is $0.14 for one shirt.