Question: Your customer, Canadian Manufacturing Inc., would like samples imported from a new supplier in Hong Kong via air freight. The Purchasing Manager, Mr. John Smith,

Your customer, Canadian Manufacturing Inc., would like samples imported from a new supplier in Hong Kong via air freight. The Purchasing Manager, Mr. John Smith, is requesting air freight rates. This is the information he provides: Chargeable weights: 550 kg and 1,000 kg. Commodity: barbeque parts (non-hazardous). Terms of sale: FCA air carrier Hong Kong, China to Door Toronto GTA (delivery, handling i n C a n a d a to be paid for by Canadian Manufacturing Inc. Duties and taxes to be determined once the orders are secured). Your pricing desk provides the following buy rates and requests you add US $0.25 to the air freight rate. Mr. John Smith wants the quotation all in USD. Exchange rate: US $1.00 = CAN $1.00 Buy rate: CHARGES CURRENCY 500 KG 1,000 KG Air freight USD $4.75/kg $3.50/kg Fuel USD $0.20/kg $0.20/kg Security USD $0.05/kg $0.05/kg ORIGIN CHARGES Pick up fee USD $0.10/kg; min. $50.00 $0.10/kg; min. $50.00 Handling USD $45.00 per shipment $45.00 per shipment Terminal handling charges USD $0.04/kg; min. $10.00 $0.04/kg; min. $10.00 DESTINATION CHARGES Handling CAD $45.00 per shipment $45.00 per shipment Terminal handling CAD $0.08/kg; min. $45.00 $0.08/kg; min. $45.00 NavCan fee CAD $0.07/kg; min. $7.00 $0.07/kg; min. $7.00 Delivery CAD $0.30/kg; min. $50.00 $0.30/kg; min. $50.00 Prepare the following: a) A cover letter/e-mail explaining your b) quote. A quotation. c) The calculations for totals for each weight break.

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