Question
You are an assistant merchandiser for Lands' End and work in women's woven department. Your manager is sourcing cotton blouses from Indonesia and asked you
You are an assistant merchandiser for Lands' End and work in women's woven department. Your manager is sourcing cotton blouses from Indonesia and asked you to calculate FOB and LDP prices, based on the numbers below. A mill in Indonesia can copy the fabric in the prints and colors you want at a cost of $3.00 per yard. Each blouse requires 1.25 yards. The factory quoted CMT price $3.50 per shirt. Women's woven cotton shirts from Indonesia are subject to 16.2% duty on the full FOB price. Shipping shirts from Indonesia to the U.S. costs $0.40 per piece. Finally, custom clearance and inland transportation to the Lands' End distribution center is $0.25 for one shirt.
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