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