1) Product information
Product name: BOY’S 100% COTTON KNITTED T-SHIRTS. Item number: 2301.
Packing: 10 pieces in one plastic bag, 8 plastic bags in each carton.
Packing size: 65cmx41cmx33cm=0.087945m’, weight per box: 0.W. is 15kg, Nw is 14kg.
HS code: 6109100021, VAT rate is 16%, tax refund rate is 16%. Domestic purchase price (tax included): 15.40 yuan/piece.
Domestic freight forwarding fees: about 2,500 yuan, other business expenses: about 3,000 yuan.
Ocean freight from Shanghai to Los Angeles: USD 1,450/20′ container,
Insurance rate: 0.3% for all risks, insurance premium rate 10%.
Bank exchange rate: USD 1 = RMB 6.8346.
Expected profit margin: set at 15% of the sales price.
Quoted quantity: 21,600 pieces.
2) Price calculation process (it is recommended to use Excel spreadsheet to set up formula calculation)
(1) The cost and expense of each unit of goods are calculated as follows.
Tax refund income = purchase price ÷ (1 + VAT rate) x tax refund rate = (15.40/1.16) x 16% = 2.1241 yuan Domestic cost per unit of commodity = (2500+3000)/21600 = 0.2546 yuan Domestic total cost = purchase price + cost minus export tax refund income
= 15.40+0.2546-2.1241
= 13.5305 yuan/piece
FOB Shanghai cost price = domestic total cost ÷ bank exchange rate
= 13.5305 ÷ 6.8346
= 1.9797 USD/piece
Sea freight per unit of commodity = 1450 ÷ 21600 = 0.0671 USD(2) FOB price is calculated as follows.
FOB Shanghai price = FOB cost price + FOB Shanghai price x profit margin ∴.FOB Shanghai price
= FOB cost price ÷ (1-profit margin)
= 1.9797 ÷ (1-15%)
= 2.3291 USD/unit
(3) CFR price is calculated as follows.
CFR Los Angeles price = FOB cost price + ocean freight + CFR Los Angeles price x profit margin ∴ CFR Los Angeles price = (FOB cost price + ocean freight) ÷ (1-profit margin)
= (1.9797 + 0.0671) ÷ (1-15%) = 2.4080 USD/unit
(4) CIF price is calculated as follows.
CIF Los Angeles price = FOB cost price + ocean freight + insurance premium + CIF Los Angeles price x profit margin insurance premium
=(1.9797+0.0671)÷(1-15%-0.0033)
: CIF Los Angeles price = (FOB cost price + ocean freight)÷[1-profit margin-(1+10%)x insurance rate]
=CIF Los Angeles price x (1+10%) x insurance rate
=2.4174 USD/piece