Question

I would like you to know one of the common ways of calculating export prices.


Market price for customer---200
Manufacturing cost----50
Freight-----10%
Duty-----6%

Calculate the export price and profit: Exporter ---importer (35 % profit)----distributor- (35%) ----local dealer (45%)----customer (end user)

* Importer wants 35% margin (profit) on his/her on selling price
Distributor wants 35% margin on their selling price and similarly the local dealer wants a 45% margin when selling to the customer.

Answer 1

	Local dealer to Customer $ & %		Distributor to Local dealer $ & %		Importer to Distributor $ & %
End price for the Buyer	200	145	137.93	135	102.17	135
Seller's profit(% ) given	62.07	45	35.76	35	26.49	35
Seller's cost     (Price-Profit)	137.93	100	102.17	100	75.68	100
	200/145*45=	62.07	137.93/135*35=	35.76	102.17/135*35=	26.49

From the table,
Importer's cost=
Exporter's selling price=		75.68	Answer
Total cost:
Manufacturing cost	50
Freight--- (50*10%)	5
Duty---(50+5)*6%	3.3
Total cost		58.3
Profit		17.38	Answer