Accounting: Calculated Profit Margin

Accounting: Calculated Profit Margin

QUESTION DESCRIPTION

You manage an exclusive line of Southwestern Native Indian jewelry that sells world-wide from your website. The products are light weight and high in value. All website prices include shipping and handling, and you use the services of United Parcel Services (UPS). Assume the average French buyer places an order of $350. Details are; cost of jewelry + packaging = $156. Total weight of the package = 4.41 pounds, approximate package dimensions, Height = 3.94 inches, Length = 5.91 inches, Width = 3.94 inches. U.S. zip code is 87499 (Farmington, New Mexico), and the French zip code is 91400 (Orsay, Essonne). Is the calculated profit margin reasonable to sell to the French market? What other recommendations would you offer?

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