Question

Stellar Electronics is selling products in a foreign country that charges 10% tariff on shipping into the country. If the tariff on a particular shipment was $120,000, what was the value of the shipment?

Answer 1

Value of shipment having tariff charges is $1,200,000

Solution:

Given that Stellar Electronics is selling products in a foreign country that charges 10% tariff on shipping into the country.

For a particular shipment tariif = $120,000

Need to determine value of the shipment

Let’s assume the value of the shipment = x

As from given information, tariff on shipping = 10 % of value of shipment

So tariff on shipment having value of x
`=10 \% \text { of } x=(10)/(100) * x=(x)/(10)`

But it’s given that tariff on shipment = $120,000

`\begin{array}{l}{=>(x)/(10)=120,000} \\\\ {=>\mathrm{x}=120000 * 10=1200000}\end{array}`

Hence value of shipment having tariff charges is $1,200,000