Shipping Costs Exercise
- In order to properly price your product so you can make a profit,
you need to know what your shipping costs are going to be.
- In this exercise you will calculate costs based on five different shipping terms:
- The values used for the charges are not exact, but are realisitc for ocean freight.
- Ocean rates are charged per weight or measurements of the shipment, whichever yields greater revenue to the carrier.
- To calculate the correct ocean freight charges, for each package you need to know:
- The actual gross weight of the shipment in kilograms.
- 1 kilograms equals approximately 2.2046 pounds.
- The measurements (length, width, height) in cubic meters of each package.
- 1 cubic meter equals approximately 35.31 cubic feet.
- You will need to provide:
- Size of the packages in cubic meters.
- Shipping weight in kilograms.
- Distance to the inland port in kilometers.
- Cost of your product.
- Price of your product.
- Other pertinent information.
© 2004 - 2005 John Michael Pierobon