# Homework

Submitted By ngevans
Words 520
Pages 3
Homework Assignment 3

1. Current price in US dollars? (1924/98) \$19.63 USD The price in July 2012? (1924/123) \$15.64 USD

2. The percentage price change since January?
(1924/114) = \$16.88 USD
(\$19.63-\$16.88) = \$2.75
(\$2.75/16.88) = 16.29% increase.

Since last July?
19.63-15.64 = 3.99
3.99/15.64 = 25.51% increase

3. What other factors does Dennis need to consider in calculating total landed cost?
Cost of the item, brokerage fees, shipping costs, currency conversion, shipping costs, handling fees, customs duties, tariffs and taxed

4. What do each of these terms mean to Dennis? a. Ex works, Seoul, Korea, SKw 12,100
(12,100/806)=\$15.01 USD.
This is the price of the unit once it is made accessible at the factory. There are still costs that need to be added such as, transportation costs, insurance cost, brokerage fees and applicable duties/taxes. b. CIF Baltimore, \$15.50 USD. This means that the cost includes transportation and insurance to the port in Baltimore. Here are still costs that need to be added which are, brokerage, duties/taxes, and inland freight costs. c. DDP New York, \$16.50 USD. This means that the cost has already been figured in and it includes transportation, insurance and duties/taxes. The cost that needs to be added is inland freight and brokerage fees.

5. What other pieces of information might Dennis require in order to make an informed decision? a. For choice A, with Ex works, how much the transportation expense will total out to be as well as the insurance rates, brokerage charges, any relevant duties/taxes, and lastly inland transportation fees. b. For choice B, CIF Dennis will need to know the brokerage fees, any applicable duties/taxes, and inland freight charges from Baltimore to Philadelphia in order to make a more informed decision. c. For DDP New York,...

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