Question: An overseas distributor would like to market a product that you are currently manufacturing for local consumption.Pertinent data is as follows: Domestic list price per

An overseas distributor would like to market a product that you are currently manufacturing for local consumption.Pertinent data is as follows:

Domestic list price per unit$3,500.

Product cost, including profit margin$550.

Surplus production capacity available for export:10,000 units.

Total sales and marketing for the export market:$30,000.

Preparation for shipping per unit:$100.

Inland transportation cost per unit:$25.

Port and loading charges per unit:$25.

Main carriage "maritime transport"per unit:$35.

Maritime insurance per unit:$10.

Unloading charges per unit:$5.

Duties (import and delivery):10%

Total international financing cost:$30,000.

Assuming the company utilized 100% of its surplus production capacity for the proposed export, the total per unit cost of exporting would be:

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