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An example of a practical algorithm for foreign trade, please verify! The delivery price, terminal lump sum fee, tax rate, and profit rate are known. Calculate FOB quotation.

FOB price = purchase cost price + domestic expenses + net profit

5600 is the purchase cost price, port lump sum fee, export tariff are domestic expenses, and the net profit is the total cost Basically times one plus two percent. Again, the total cost is the purchase cost price plus domestic charges.

Export tariff = FOB price (FOB)/(1+export tax rate) *Export tax rate

FOB price = (560400.07*FOB/1.07)*(1 +2%)

1.07*FOB price=6120*1.07+0.0714*FOB

1.0986*FOB=7160.4

So, FOB=6517.75