Real-Life Math
As a trade specialist, you need to keep up with the prices of commodities
being imported and exported by your clients. In a few hours you'll
meet a client who operates a beverage distribution plant. He wants to know
this week's prices for tea and coffee.
"We use a fairly large
amount of math on the job," says trade specialist Walter Stunder. "We work
mostly in percentages to figure out exact prices and the percentages of duty
that will be added to the value."
Unfortunately for the buyer, tea
and coffee have both become more expensive products to import. You have examined
the different trading regulations from various countries, and found your client
a reliable supplier who will give the best deal.
Below are the amounts
and prices of the products your client wants to import. On top of each price,
remember to add the customs tax and the duty.
Tea
Your
client has ordered 125 crates of tea at $32 per crate. The transportation
cost of the tea is $535. On top of the total value of the product, including
transportation, calculate the 10 percent customs tax and the 12 percent duty
costs.
Coffee
This same client has ordered 145 bags
of coffee at $55 per bag. The transportation cost of the coffee is $321. In
this instance, the customs tax applies to both the price of the coffee and
the transportation costs, but the duty costs only apply to the price of the
coffee and not to the transportation costs. Calculate the cost of the coffee,
with the same 10 percent customs tax and the 12 percent duty costs.