No.

Item

Question Four
Amount (USD)

Variables

FOB (EuroPean Port) Price

Insurance and freight

FOB)

CIF Entebbe Value

Import Duty (% CIF)

Sales Tax Value (STV)

Sales tax (% STV)

Tax

Rate

Amount @ Car
Shs.

Total

8,300.00

(%
10

830.00

9,130.00

33
$
25

400

3,652,000

3,012.90

200

602,580

3,035.73

200

607,145

40,172,000

12,142.90

Taxes

1,209,725

13,306,975

Sub Total

4,861,725

53,478,975

Profit

729,259

8,021,846

Price

5,590,984

61,500,821

Question Four
a)
b)
c)i
c)ii
d)a
d)b

11

4,533,760
4,715,288
5,375,744
5,590,984
13,306,975
8,021,846

Shillings
Shillings
Shillings
Shillings
Shillings
Shillings

Year
2003
2004
2005
2006
2007
2008
2009
2010
2011

Price ($)
116
110
120
127
133
124
130
140
145

Demand ('000')
93
96
89
85
83
91
86
82
80

Demand ('000')
100
95
90
85
80

102
134

99
84

75
100

110

120

130

140

150

160

Demand ('000')
Regression Line

y = -0.4609x + 145.86
R = 0.9224