Question

CALCULATION (10 points IV. Shanghai Triumph Trading Company received an enquiry from a Japanese company for 4000 tins of canned mushrooms (every 20-tins packed in a carton, all cartons transported in a 20-ft. container). Triumph company has learned from the SKD food company that price of canned mushroom is CNY 300 each carton plus 10 yuan per carton for packing Furthermore, it will cost Tseng total of 2000 yuan for domestic transportation freight, 300 yuan for export commodity inspection, 150 yuan for customs clearance charges, and 500 yuan for others. The ocean freight from SHANGHAI to OSAKA is JPY 20000 for a 20-ft. insurance coverage is for 110% of the wants to earn 10% profit of container. According to customers' requirement, export price, the premium rate is 0.5%. If Triumph Company the export price, try to calculate the CIF quotation for each carton. (JPY against CNY is 100:5). Please answer the following question. (15 points) Please draw a graph to indicate the procedure of export and then give a brief introductic V. to it. Cases study (30 points, 10points for each 1. Company C in China received an offer from Company D in Paris on date July 2009: "500 metric tons of tinplate, 545 U.S. dollars per metric ton CFR China VI. InT of credit, the offer is effective within 7 on we

Answer 1

IV. We need to calculate the cost and freight of 4000 tins

Given that 4000 tins of canned mushroom are packed in cartons containing 20 tins each. i.e the number of cartons are 4000/20 = 200 cartons. These cartons are transported in a 20 ft carton.

Total cost and freight includes the following-

1. Price of canned mushroom = 300 yuan per carton plus 10 yuan as packaging cost. Hence total cost is 310 yuan per carton or 62000 yuan for the container.

2. Domestic transportation freight = 2000 yuan

3. Export Commodity Inspection = 300 yuan

4. Custom Clearance charges = 150 yuan

5. Others = 500 yuan

6. Ocean Freight = JPY 20000 for a 20ft container which is 1000 yuan (as JPY : CNY = 100:5)

Total cost and freight charges (CFR) = sum of 1 to 6

CFR = 62000 + 2000 + 300 + 150 + 500 + 1000 = 65950 yuan

Now, insurance cost is 110% of the CFR at premium of 0.5%

Insurance coverage = (65950 * 110* 0.5) $\div$ 10000

= 362.725 yuan

Hence, Cost freight and insurance (CIF) = 65,950 yuan + 362.725 yuan = 66,312.725 yuan

Profit on Export price = 10 % of 66312.725 yuan = 6631.27 yuan

Total CIF quotation = 72943.99 yuan

Hence, CIF quotation for each carton = 72943.99 yuan / 200 carton = 364.72 yuan per carton