I.Introduction to the FOB Quotation Principle

The FOB quotation of export products is calculated based on the following formula: Export Price = Cost + Expenses + Expected Profit.This means that when determining the quotation,export enterprises need to consider not only the cost of the product but also various related expenses and the expected profit.

II.Case Analysis: Export Quotation of Food Additives

Based on the actual situation that foreign customers are seeking to purchase 20 tons of food additives,we can calculate as follows:

Calculation of Purchase Cost

1) Purchase price of food additives: 6200 yuan/ton

2) Rate: 13%

3) Purchase cost = 6200÷(1 + 0.13)= 5486.7257 yuan/ton

Total Expenses

1) Domestic transportation fees,customs declaration fees,port miscellaneous fees,etc.in total: (1000 + 100 + 4860 + 800)÷20 = 338 yuan/ton

2) Loan comprehensive annual interest rate expenses: (6200×0.092)÷(12×3)= 142.60 yuan/ton

3) Total expenses = 480.6 yuan/ton

Calculation of Additional Expenses

1) Bank handling fee = Quotation x 0.5%

2) Customer commission = Quotation x 5%

3) Profit = Quotation x 12%

4Determine the FOB RMB Quotation

FOB RMB quotation = (5486.7257 + 480.6)÷(1?(0.005 + 0.05 + 0.12)) = 7233.1221 yuan/ton

FOB USD quotation

1) Current RMB - to - US dollar exchange rate: 7.1788: 1

2) FOB US dollar quotation = 7233.1221÷7.1788 = 1007.57 US dollars/ton

III.Conclusion

According to the above calculation,the FOB quotation for the export of food additives is 1007.57 US dollars/ton.