Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. payment of duty and duty-related carrying cost l

Payment of Duty and Duty-Related Carrying Cost Liston, Inc., owns a factory located...

50.1K

Verified Solution

Question

Accounting

Payment of Duty and Duty-Related Carrying Cost
Liston, Inc., owns a factory located close to, but not inside, a foreign trade zone. The plant imports volatile chemicals that are used in the manufacture of chemical reagents for laboratories. Each year, Liston imports about $16,400,000 of chemicals subject to a 30% tariff when shipped into the United States. About 15% of the imported chemicals are lost through evaporation during the manufacturing process. In addition, Liston has a carrying cost of 8% per year associated with the duty payment. On average, the chemicals are held in inventory for 9 months.
Assume that Liston is considering building a new plant inside a foreign trade zone to replace its chemical manufacturing plant.
Required:
1. How much duty will be paid per year by the factory located inside the foreign trade zone?
fill in the blank 1 of 2$
2. How much in duty and duty-related carrying costs will be saved by relocating inside the foreign trade zone?
fill in the blank 2 of 2$

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

You are in charge of the bond trading and forward loan department of a large investment...

General Management
1.2K views

discuss in detail, with the use of practical examples the following 3 management styles and the...

Calculus
1.2K views

A police car is located 40 feet to the side of a straight road.A red...

Calculus
1.2K views

4 5 points Which of the following is a true statement about the function f...

Algebra
1.2K views

10 For angle 0 in the first quadrant cos 0 5 13 sin 0 tan...

Accounting
1.2K views

Advent Company incurs a direct labour rate of $15 per hour applies overhead to jobs...

Accounting
1.2K views

Which statement is true regarding the U.S. GAAP impairment test for limited life intangibles? ...

Accounting
1.2K views

Coit Compary procfuces rwo sketeboard models. Machine time per unit for Hero is two hours...

Accounting
1.2K views

total assets? 5510500 5935500 \$57e000

Accounting
1.2K views

Please solve this accounting problem

Accounting
1.2K views

For purposes of an acquisitive D Reorganization, control is defined as 50% of the voting...

Finance
1.2K views

S Your business requests a 3-month loan for $450,000. What will be the interest paid...