Question

An oil company has agreed to buy oil from Russia at 1,800 Rubles per barrel. Have it shipped to Amsterdam by a Norwegian shipping line for 20 Kroner per barrel. The oil will be refined in Rotterdam for 20 Euros per barrel. Finally, a Philippine shipping line will bring gasoline to Miami for 200 Philippine pesos per barrel. What is the landed cost in dollars of this four-part transaction

Answer 1

Landing cost = 56.49 dollars per barrel.

Step-by-step explanation:

Buying Cost of oil barrel = 1,800 Rubles, which is equal to 27.50 USD per barrel.

Shipping Cost = 20 Krones, which is equal to 2.35 USD per barrel.

Refining Cost = 20 Euros, which is equal to 22.82 USD per barrel.

Transportation Cost = 200 Philippine peso, which is equal to 3.82 USD per barrel.

Therefore, to find landing cost of the above mentioned transaction = 27.50 + 2.35 + 22.82 + 3.82 = 56.49 USD per barrel.