Question
You have quotations for 1,000 yards of linen fabric from three different suppliers. One supplier is in Mumbai, India; the second supplier is in Shanghai,
You have quotations for 1,000 yards of linen fabric from three different suppliers. One supplier is in Mumbai, India; the second supplier is in Shanghai, China; the third supplier is in Jakarta, Indonesia. The supplier in China quoted you a price of $3,000 EXW place of manufacture for 3,000 yards while the other two suppliers quoted you $2,800 EXW place of manufacture for 3,000 yards. Inland freight and export clearance in India is $200 and $150 in China and Indonesia. Freight from India to New York is $1,000; from China is $900 and from Indonesia is $950. Inland freight in New York is $200. The rate of duty is 10% (on EXW value) and other import clearance charges are $100. The supplier with the lowest estimated final cost is:
China
They all have the same estimated final cost
Indonesia
India
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