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 [tex]=10 \% \text { of } x=\frac{10}{100} \times x=\frac{x}{10}[/tex]
But it’s given that tariff on shipment = $120,000
[tex]\begin{array}{l}{=>\frac{x}{10}=120,000} \\\\ {=>\mathrm{x}=120000 \times 10=1200000}\end{array}[/tex]
Hence value of shipment having tariff charges is $1,200,000
