Course Code Course Name Section Code

IBM – I-G2 International Market Entry BU1233-G2

Strategies
Type of Evaluation Percentage Weight of
Total
Winter 2020 Quiz #3 Evaluation

10 %
Course Instructor Quiz Date Total Marks /15

Gus Lazopoulos April 2nd., 2020

Student Name: Rajvi Rajendra Chatwani Student ID #: 201900929

Please, prepare the cost sheet, based on the following

information.
a) Commodity: Icumsa 45 Sugar
• Quantity: 100,000 MT in bulk
• Exchange rate: US $1.00 = CAD $1.25
• Cost Ex-warehouse: CAD$25,000,000
• Trucking (freight to dock): CAD$500,000
• Wharfage and handling: CAD$4 per MT
• Finance charge: 2.5%
• Profit margin: 7%
• Agent’s commission: CAD$100,000
• Ocean freight: US$5,000,000 for total shipment
• Marin insurance: 1% on 110 % of the C&F value

Please, use the attached cost sheet to make your calculations, show all
calculations,

Round your final answer to the nearest dollar amount; then, put the final price to
the nearest $5 amount.
 Costs CAD$ US$ Notes
Cost Cost
Cost [EXW] Ex- $250
warehouse
Trucking (freight to dock) $5
Cost to Dock $255 $250 + $5 = $255
Wharfage and Handling $4
Cost FAS (beside vessel) $259 $255 + $4 = $259
Finance Charge $6.48 $259 * 2.5% = $6.48
Profit Margin $18.58 $259 + $6.48 * 7% =
$18.58
Agent’s Commission $1
Price FOB $285.06 $259 + $6.48 + $18.58
+ $1 = $285.06
Convert to US$ $228.05 $285.06 / $1.25 =
( move to new column ) $228.05
Ocean Freight $50
Price [CFR] C&F $278.05 $228.05 + $50 =
$278.05
Marine Insurance $3.06 $278.05 * 110% * 1% =
$3.06
Total [CIF] CIF $281.11 $278.05 + $3.06 =
$281.11
Round to the nearest US$ $281
Round to the nearest US$5 $280