Question

You have been asked to analyze the bids for 200 polished disks used in solar panels. These bids have been submitted by three suppliers: Thailand Polishing, India Shine, and Sacramento Glow. Thailand Polishing has submitted a bid of 3,000 baht. India Shine has submitted a bid of 3,000 rupee. Sacramento Glow has submitted a bid of $3,000. You check with your local bank and find that $1=10 baht , and $1=8 rupee. The final destination for the disks is New Delhi, India and there is a 35% import tax. Thailand Polishing and Sacramento Glow are based outside of India and India Shine is based in India.A .What is the price per unit in dollars, including import tax for Thailand polishing?B. What is the price per unit for India Shine?C. What is the price per unit for Sacramento Glow?

Answer 1

Answer:

(a) Thailand polishing price per unit is $2.03

(b) India shine price per unit is $1.88

(c) Sacramento glow price per unit is $15

Explanation:

(a) Thailand polishing:

Thailand polishing has submitted a quote of 3000 baht

$1 = 10 bhat

1 bhat = $ 0.1

Thailand polishing submitted bid = 3000 × $0.1 =$300

Import tax = 35%

Total cost = 1.35 × 300 = $405

Cost per unit = 405 ÷ 200 = $2.03

(b) India shine:

India shine has submitted a bid of 3000 rupees

$1 = 8 rupees

1 Rupee = $0.125

India shine submitted bid = 3000 × 0.125 = $375

Price per unit = 375 ÷ 200 = $1.88

(c) Sacramento Glow submitted bid = $3,000

price per unit = $3,000 ÷ 200

= $15