Mindy’s Lights” produces light fixtures designed and made in Brossard, Montreal south shore, by Mindy and her team using ecological material only.
In early November 2021, Mindy’s Lights received an order from a new customer based out of Düsseldorf – Germany for a specific item from the newest collection 2021, the “Industrial Pendant Light fixture “. The order included 125 units of this item.
All international trade details are set and agreed upon by both parties. However, Mindy needs to calculate the export price of her goods to be able to determine the final selling price as per the Incoterm to be chosen.
This being her last step, Mindy is asking for your help calculating the complete cost of export. To do so, she is sharing with you all the necessary data needed to do the job.

What you need to know:
1- Every light fixture will be packaged individually by a packaging company located in Montreal. This company will take in charge all packaging details for a cost of $10 each.
2- The shipment will follow this specific and confirmed route:
o From the production site in Brossard to the port of Montreal: by truck.
o From the port of Montreal to the Osthafen port in Frankfurt: on board of a vessel.
o From the Osthafen port to the airport of Frankfurt: by truck.
o From Frankfort airport to Düsseldorf airport: by airplane.
o From Düsseldorf airport to the warehouse of the importer: by truck.
3- Each of these pendant lights costs $70 to produce.
4- Mindy will be using the services of “Intransport Inc.”, an international transportation company and freight forwarder.
5- The following is a list of the different costs of transportation that the route will be using:
o Truck transportation from Mindy’s Lights warehouse in Brossard to Intransport’s office at the port of Montreal: $750.
o Truck transportation from Mindy’s Lights warehouse in Brossard to the port of Montreal: $800.
o The sea transportation costs from the port of Montreal to the Osthafen port costs: $1,500.
o Truck transportation from the port of destination to the terminal in the Osthafen port is $500.
o Truck transportation from the Osthafen port to the Frankfurt airport is: $1,000.
o Airway transportation from the airport of Frankfurt to the airport of Düsseldorf is $3,000.
o Truck transportation from the Düsseldorf airport to the carrier’s terminal is $50.
o Truck transportation from the Düsseldorf airport to the warehouse of the importer is $400.
6- Loading/unloading costs:
o Costs of loading on truck in front of Mindy’s Lights warehouse at Brossard: $100.
o Costs of unloading from truck in Montreal’s port on the dock: $30
o Costs of loading goods on board of vessel in Montreal’s port: $120.
o Costs of unloading goods from the vessel in Osthafen port in Frankfurt: $110.
o Costs of loading goods on truck in the Osthafen port: $55.
o Costs of unloading goods from truck in the Frankfurt airport: $50.
o Costs of loading goods on board of airplane in Frankfurt airport: $70.
o Cost of unloading from an airplane and loading on board of truck in the Düsseldorf airport whether to go to the importer’s premises or to the carrier’s terminal: $60.
o Costs of unloading goods at the exporter’s premises: $45.
7- Other costs:
o Marine transport insurance cost from Port of Montreal to Osthafen port in Frankfurt: $1,100.
o Import duties and other related costs: $2,300.
Calculate the total cost of exported products as paid by the EXPORTER in each of the following Incoterms separately:
- DAP (Importer’s premises)
- FAS
- EXW

Answer rating: 100% (QA)

Answers DAP stands for delivered at the place as per Incoterms rules The seller is responsible for t... View the full answer