Elite Corp

Multiple Choice

Elite Corp.builds a manufacturing plant in a foreign trade zone.Materials costing $2,000,000 each month are imported.Duty is assessed at 6% of cost.About 14% of the materials are defective and disposed of as waste.What is the savings to the company of locating inside a foreign trade zone?

A) $25,600 per month
B) $16,800 per month
C) $12,400 per month
D) $22,200 per month