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Cost Analysis of Wright Ltd Transactions

The document summarizes the costs incurred by Santos D and Wright Ltd for a transaction involving 2000 fans. Santos D paid Wright Holding $21,883,800 for the cost price of the fans but Wright Ltd's total cost was $20,438,560 including profit, resulting in a loss of $1,547,432.80 for Santos D. Additionally, Santos D lost $840,000 in expected profit. The total loss to Santos D was $2,387,432.80.

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66 views1 page

Cost Analysis of Wright Ltd Transactions

The document summarizes the costs incurred by Santos D and Wright Ltd for a transaction involving 2000 fans. Santos D paid Wright Holding $21,883,800 for the cost price of the fans but Wright Ltd's total cost was $20,438,560 including profit, resulting in a loss of $1,547,432.80 for Santos D. Additionally, Santos D lost $840,000 in expected profit. The total loss to Santos D was $2,387,432.80.

Uploaded by

BugMyNuts
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Transaction Wright Ltd Santos D

Cost price of 2000 fans in 2000 x (10941.90) -


USD at floating rate as per = 21,883,800
the current balance sheet(the
day of delivery)-

Payment to Wright Holding - 2000 x (9744.28+ 475)


including profit- = 20,438, 560

Bank Charges 102,192.8 -

TOTAL COST INCURRED 21,985,992.8 20,438, 560

TOTAL LOSS WITHOUT PROFIT= 1,5437,432.8


LOSS OF PROFIT (2000 x 420) = 8,40,000 -

TOTAL LOSS = 2, 387, 432.8

TABLE DEPICTING ACTUAL COSTS BORNE BY THE PARTIES (USD)


TOTAL LOSS WITHOUT BANK CHARGES – 2,285,240
ADDITIONAL SECURITY- 2,00,000

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