Reference no: EM132857921

An overseas distributor would like to market a product that you are currently manufacturing for local consumption. Pertinent data is as follows:

Domestic list price per unit $3,500.
Product cost, including profit margin $550.
Surplus production capacity available for export: 10,000 units.
Total sales and marketing for the export market: $30,000.
Preparation for shipping per unit: $100.
Inland transportation cost per unit: $25.
Port and loading charges per unit: $25.
Main carriage "maritime transport"per unit: $35.
Maritime insurance per unit: $10.
Unloading charges per unit: $5.
Duties (import and delivery): 10%
Total international financing cost: $30,000.

Assuming the company utilized 100% of its surplus production capacity for the proposed export, the total per unit cost of exporting would be: