1. Calculate the Duty rate and Tax rate: Economic Factors Country A Country B Co
ID: 466928 • Letter: 1
Question
1. Calculate the Duty rate and Tax rate:
Economic Factors Country A Country B Country C Has free Trade Agreement with US yes no no Purchase order 1000 units Production labor rate 2.50 per hour 1.45 per hour 0.65 per hour Materials cost per unit 3.25 each 2.75 each 2.55 each production time per unit 2 hours 3 hours 4 hours Transportation of complete order from factory to origin port $325 $320 $400 port fees 450 200 500 ocean transportation 2100 1700 1900 from destination port to your dock 125 125 125 insurance for order 350 250 500 Duty calculated on CIF COGS CIF Duty rate: 26% ? ? ? Tax rate: 18% ? ? ? Political/legal factors system developed undeveloped military rule democratic democratic legal developed undeveloped rule of man common law common law when is your payment for this 30 days 45 days 90 days order dueExplanation / Answer
Economic Factors Country A Country B Country C Has free Trade Agreement with US yes no no Purchase order 1000 units Production labor rate 2.50 per hour 1.45 per hour 0.65 per hour Materials cost per unit 3.25 each 2.75 each 2.55 each Material cost ( per unit rate *1000) 3.25*1000 2.75*1000 2.55*1000 Material cost In $ 3250 2750 2550 production time per unit 2 hours 3 hours 4 hours Total Prd time (per unit*1000) 2000 3000 4000 Total Labour cost (Lab rate * Tot Prd time)) 2.5*2000 1.45*3000 .65*4000 Labour cost In $ 5000 4350 2600 Total COGS (Labour cost + material cost) $8250 $7100 $5150 Transportation of complete order from factory to origin port $325 $320 $400 port fees $450 $200 $500 ocean transportation $2,100 $1,700 $1,900 from destination port to your dock $125 $125 $125 insurance for order $350 $250 $500 Total CIF (transport + insurance) $3,350 $2595 $3425 Duty calculated on CIF (0.26*CIF) COGS (0.26*COGS) CIF (0.26*CIF) Duty rate: 26% $871.00 $1,846.00 $890.50 CIF + COGS $11,600.00 $9,695.00 $8,575.00 Tax rate: 18% (0.18* (CSF+COGS)) $2,088.00 $1,745.10 $1,543.50 or Nill TAX (as duty free)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.