Surcharge Example

This topic provides an example of how surcharges are calculated.

A customer submits an order on March 21, 2016 for 1 unit of SR-6001, which contains copper and zinc. The table below demonstrates how surcharges are calculated on this order.

This table describes item content for SR-6001:

Item Content	Content Factor	Surcharge Factor	Base Price
Copper	0.0083	1.0200	2,500.00
Zinc	0.0045	1.0200	1,320.00

This table describes surcharge rules:

Customer	Effective Date	Exchange Name	Rule Description
11	1/1/2016	LMX	One Day Before Order Date

This table describes item content prices:

Exchange	Content	Dom (Actual) Price	Site Date Time
LMX	Copper	7,599.0111	3/20/2013
LMX	Zinc	1,906.7815	3/20/2013

This table describes data used to calculate surcharges:

Item Content	Actual Price	Base Price	Content Factor	Surcharge Factor
Copper	7,599.0111	2,500.00	0.0083	1.0200
Zinc	1,906.7815	1,320.00	0.0045	1.0200

Copper Surcharge Amount

(Actual price - Base Price) * Content Factor * Surcharge Factor
(7,599.0111 - 2,500.00) * 0.0083 * 1.0200
$43.2722 per unit of SR-6001

Zinc Surcharge Amount

(Actual price - Base Price) * Content Factor * Surcharge Factor
(1,906.7815 - 1,320.00) * 0.0045 * 1.0200
$13.4700 per unit of SR-6001