Question: You are purchasing some components from an overseas supplier. The supplier ships 1000 boxes in each container. Supplier says their price of $40 per box

You are purchasing some components from an overseas supplier. The supplier ships 1000 boxes in each container. Supplier says their price of $40 per box is right price. Is this the right supplier?

Input (Givens)

Calculations

Transportation from supplier per container-

4500

Value of Container

Customs Fees per value of the container- 4%

4%

Custom fees

Duties Fees per Fees per value of the container- 5%

5%

Duty fees

U.S. Port Handling per container:

$2000

US Port handling fees

Insurance per container

$800

Insurance cost

Transportation Port to Warehouse per container:

$1500

Transportation cost

Warehouse storage per box

$2

Warehouse cost

QC costs per box

$5

QC costs

Purchasing price

$40

Real price

Conclusion:

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