
Case Study
LANDED COSTS
A company must analyze the total costs in importing
goods into the United States, including costs incurred once
in the country. A profile of these costs is as follows:
Stereo speakers from Beijing to Chicago
Unit cost: Ex works factory $61.00 USD ($18,300)
Inland freight: 40⬘ container (300 units) $1200.00
Ocean freight $3100.00
Export handling $220.00
Export clearance charges $94.50
Import clearance $125.00
Duties and taxes $955.50
Other clearance $70.00
Inland to Chicago $755.00
Warehousing (60 days) $122.00
Inland to customers $246.00
Total landed (300 units) $25,188.00
Per Unit $83.96
The company can now dissect the costs, affecting ...