A Kenyan businessman imports wheat from the United States at an initial cost of 500 dollars per tonne.

      

A Kenyan businessman imports wheat from the United States at an initial cost of 500 dollars per tonne. He then pays 20% of this amount as shipping costs and 10% of the same amount as customs duty. When the wheat reaches Mombasa the man has to pay 5% of the initial cost to transport it to Nairobi.
a) Given that one US dollar = sh 54.60 calculate the total cost of importing one tonne of wheat in shs
b) The businessman intends to make a profit of 20%. Giving your answer to the nearest ten cents, calculate the price at which he must sell the wheat per kg

  

Answers


John
a) Initial cost = 500 dollars

Shipping cost

$\frac{20}{100}$ x 500 = 100

Customs duty

$\frac{10}{100}\times 100$ = 500

Transport

$\frac{5}{100}$ x 500 = 25

Total cost in U.S dollar

= 100 + 50 + 25 + 500

= 625

1 U.S dollar = sh 54. 60

675 U.S dollar = sh 54.60
675 U.S dollar?

675 x 54.60

= sh 36 855

b) $\frac{54.60\times 675\times 120}{100\times 1000}$
johnmulu answered the question on March 6, 2017 at 12:55


Next: Find the estimate of the area enclosed by the curve y = 3x3 -5, the x axis and the line x = 4 and x = 6 using the mid-ordinate rule with 4 rectangles
Previous: The number 7.25 is given to the nearest 0.01. Calculate

View More Mathematics Questions and Answers | Return to Questions Index


Exams With Marking Schemes

Related Questions