Gce Model Questions Vol1 2022 Commerce Question 36
Practice objective / multiple choice question 36 from the 2022 Gce Model Questions Vol1 Commerce examination.
A UK exporter sets an FOB price of \(£12{,}000\) for a shipment to the USA. Shipping costs \(£800\) and insurance is charged at \(0.5\%\) of the FOB price. The exchange rate at the time of export is \(£1 = \$1.30\). The US buyer is charged an import duty of \(5\%\) on the CIF value (cost, insurance, freight) and receives a \(10\%\) discount on the total invoice (CIF + duty) after conversion to dollars. The buyer pays in dollars, and the exporter converts the received amount back to pounds at a rate of \(£1 = \$1.28\). If the exporter's production cost is \(£9{,}500\), what is the exporter's profit in pounds (rounded to the nearest pound)?
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About This Question
This is Gce Model Questions Vol1 2022 Commerce Question 36. It is one of the objective questions from the 2022 Gce Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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