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the worksheet is suppose to look similar to this You are the new export manager for a mid-size manufacturer of sports socks in Tuscaloosa. The

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the worksheet is suppose to look similar to this
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You are the new export manager for a mid-size manufacturer of sports socks in Tuscaloosa. The company, Decathlon, makes socks in a variety of styles and sizes in cotton blends under its own label. It also does private label business for major sports labels like Nike and Adidas. Decathlon sells nationwide and has just started an export department to find overseas customers. You received an email inquiry from a potential distributor in Varna, Bulgaria. The company owner met you at a sporting goods trade show in Las Vegas, NV last month. In the emaif, the owner wants to be your exclusive distributor for Central \& Eastern Europe and asked for a CIP quote on a 40 foot container to Istanbul, Turkey, the cheapest \& closest port to its warehouse facility in Varna. He would prefer 180 day payment terms, but since this is your first inquiry from the Bulgarian company, and given the current economic situation, you must decide if more conservative or secure payment terms are warranted. Through your shipping department and freight forwarder you have received the following information. - A 40 foot container holds 45,000 dozen pair and ocean freight will be $2,500. The unit price at your factory is $20.00 per dozen pair. (Think of a "dozen pair" as a "bag of socks"; unit price = one bag.) - Inland freight to the U.S. port of Mobile, AL is $500. - Insurance is calculated at $0.10 for every $100 of the total Cost + Freight (CPT). - The import tariff is assessed at 3% of the CIP value of your product. - There is a VAT tax of 10% assessed on the total "CIP value plus tariff" amount. - It will cost $390.90 to get the container loaded on a train and sent from Istanbul Turkey to the distributor's warehouse in Varna, Bulgaria. Your assignment: 1. Prepare a worksheet (not a pro forma invoice) titled "Logistics Cost Analysis." This is identical to the Export Quotation Exercise that was completed in class, and is posted on Blackboard. (35 pts) What is the price per dozen pair at the following four points in the transit of the goods: a) FCA Tusealoosa, b) FCA Mobile, c) CIP Istanbul, \& d) Distributor's Varna warehouse. Note: Not looking for the 'per individual sock' price. They're sold by the dozen pair, so divide by 45,000 . ITEM OTHER CHARGES PRICE/Order PRICE PER BBL Price EXW Tuscaloosa Inland freight and Domestic Handling Charges FAS Long Beach Lording on Vessel FOB Long Beach Ocean Freight CFR Yokohama. ..... Marine Insurance CIF Yokohama Import Tariff Fordign Goods Label Tax Inland Freight, Japan Price at warehoure Tolyo

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