The following information flows from our "tea towel" container problem on day 1. Use the number of cases that can fit into a standard 40 ft. container along with the following information:

*The factory gate price in China is $14 per case * A case holds 12 tea towels

*You ship from a factory 3 hours (200 kilometers) inland from the deep water port of Shanghai. Your costs of moving the container to the port of Shanghai will be $1.30 per kilometer in 2023.

*Loading and port fees in Shanghai are $95 a container.

*You will be booking a container at non-contract spot rates between Shanghai and Los Angleles, USA. Do some research and determine the approximate cost of shipping a 40 ft. container eastbound China to the U.S. west coast at this timeApril 2023.

1. a) State your assumption of the per container rate. b) Calculate the ocean transportation cost per CASE c) Calculate the ocean transportation cost per TOWEL

You move the containers through the Port of LA. Getting your container off the ship and off the dock to a local LA warehouse now costs $250 (drayage).

Fees you pay to your customs broker are $550 which includes the applicable basic customs duty rate.

However, you will also have to pay a "Trump Tariff" of 20% on the invoice (factory gate) price for textiles.

To move your container from the LA warehouse to Chicago you are quoted a truckload rate of $2.65 per mile.

To complete:

1. d) What is the 'landed cost" per case of towels? (Show work or do in Excel)
2. e) You sell to retailers. If you wish to have a 50% gross margin (based on costs calculated here) on these towels as you sell them to retailers, what case price would you recommend they be sold at?
3. f) If the retailer wants to mark-up 40% over their cost, what will the approximate selling price of ONE TOWEL be in the retail store to the final customer?