Please read and answer the questions at the end in detail This company, located in Seattle, Washington, in the United States, is a distributor of engineering equipment and machine tools. The company receives an order from the Matens Company in Portugal for 10 light earth-moving machines. Since the company does not normally carry this number in stock, the export manager, Mr. Green, places an option on 10 machines with the CPPC Manufacturing Company in Akron, Ohio, and requests a firm price quotation to be held in force for 90 days. The CPPC Company agrees to this and quotes a price of US$4500 ex warehouse, Akron, Ohio, for each machine.

Mr. Green checks with his traffic manager and is told that railroad freight from Akron to Seattle for these machines will average approximately US$750 per machine. Other costs are as follows:

	US$
Trucking and handling	5.00 per short ton
Export packing	70.00 per machine
Shipping to pier	4.20 per short ton
Wharfage and handling	3.30 per 40 cubic feet (cf)
Heavy lift charges: (applicable to items weighting over 5000 lb	17.00 per 2000 lb.
Ocean freight: Seattle to Lisbon	142.50 per 2000 lb or 40 cubic feet, weight/measure
Marine insurance: shipped under deck	1.70 per $100
Marine insurance: shipped above deck	2.50 per $100
Portugal consular invoice fee	20.00 per invoice
(RAP)Seattle Engineering & Equipment Company markup	20% of machine cost

Weights and measurements
10 crates containing chassis, each	6400 lb, 180 cf
10 boxes containing rails, chains, and parts, each	6000 lb, 50 cf
10 bundles coating wheels and tires, each	240 lb, 20 cf

Questions:

1. Calculate the C&F Lisbon price per machine and the CIF Lisbon price per machine.
2. At what point in time, or place, will RAP's responsibilities for arrangements of the shipment end? When does RAP's legal liability end and when does it acquire the right to payment?
3. How would your answer to question 2 change if the terms of sale were FOB vessel (FOB) or ex dock?

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