Asked by Savannah Grosse on Apr 26, 2024
Verified
XYZ, Inc. plans to purchase 460 units of a certain component used in building computers in their U.S. factory. XYZ, Inc. can purchase the components from country A at a price of $42 each plus an ad valorem duty of 42%, from country B at a price of $54 each plus an ad valorem duty of 2%, or from a domestic manufacturer at a price of $51 each. They take the lowest bid. Compute the amount the 460 units will cost XYZ, Inc.
Ad Valorem Duty
A type of tax applied on the value of an item, commonly used in the context of customs duties on imported goods.
Country A
A placeholder name often used to denote a hypothetical or undisclosed nation in discussions or examples.
- Implement mathematical methods to determine duties and taxes in cross-border transactions.
- Study the economic influence of contracting in foreign currencies as compared to U.S. dollars.
Verified Answer
JC
Learning Objectives
- Implement mathematical methods to determine duties and taxes in cross-border transactions.
- Study the economic influence of contracting in foreign currencies as compared to U.S. dollars.