Marginal Cost Pricing Direct cost are covered Total Cost = Fixed Cost + Variable Cost Variable Cost

Direct material + Direct Labor Marginal Cost Export Price Variable Cost + Other Cost Directly related to Export (i) (ii) (iii) (iv) (v) Special Packing. Commission to Oversea Agent. Export Credit Insurance. Bank Charges. Inland Fright.

Variable Cost + Other Cost Directly related to Export.. (vi) (vii) (viii) (ix) (x) (xi) (xii) (xiii) Port Charges. Forwarding Charging. Export duty. Documentation & Incidental. Cost of after sales. Promotional. Pre-shipment Inspection Prot Charges.

- Less duty Drawback = Export Price