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ACBUS201A Commercial 1 Assessment Event 1 – Portfolio As detailed in the Subject Guide, portfolio activities are due by 12noon the day following the relevant class, using the link provided on the...

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ACBUS201A Commercial 1
Assessment Event 1 – Portfolio
As detailed in the Subject Guide, portfolio activities are due by 12noon the day following the relevant
class, using the link provided on the subject Moodle from weeks 3-11. No extensions are available.
Student portfolio activities are marked each week as follows:
• 0 marks – the student did not attempt the activity.
• 0.5 marks – the student attempted the activity, with a superficial or incomplete response.
• 1 marks – the student made a genuine attempt to address all activity requirements.
Portfolio Activity #7 – Week 9
The NSW Beef Farmers [‘NSWBF’]
eeds a mix of Mashimi and Wagyu cattle,
producing a unique and expensive beef product selling for $200 per kg on
wholesale markets. In November 2019, NSWBF signed a binding agreement with
China Beef Imports [‘CBI’] to provide 500kg of their beef, each week during 2020
to 2023, with NSWBF responsible for delivering the beef to the CBI warehouse
in Beijing as part of the agreed price. NSWBF a
anged freight contracts with
Wantas Airlines to fulfil these deliveries, at a cost of $9 per kg. NSWBF’s
agreements with CBI and Wantas made no mention of pandemics, flight
cancellations, or Government restrictions on flights or trade.

In April 2020 Wantas cancelled all scheduled flights to China, due to the Covid19
pandemic. Freight remained possible via special Wantas flights, or alternative
flights via Hong Kong or Singapore, but with limited cargo space on each flight,
the cost of freight has increased to $290 per kg.

CBI has received an exemption from import restrictions for Australian beef
products, as the beef products are very popular amongst wealthier people in
Beijing. CBI is insisting that NSWBF meet their contractual obligations and
continue beef deliveries. NSWBF has a cost of production of $110 per kg of beef,
and will lose a large mount of money each week if they continue to make
deliveries to CBI paying the increased freight costs.

Discuss whether NSWBF must still deliver beef under their contract, given the
ise in freight costs between Sydney/NSW and China.

ACBUS201A portfolio #6 week 8 v1
Answered Same Day Sep 24, 2021

Solution

Sanjukta answered on Sep 25 2021
140 Votes
1
Assessment Event 1 – Portfolio
As observed in the case study it can be stated that NSW Beef Farmers ‘NSWBF’ must deliver the beef under their contract only. However, it is needless to say that the cost of the freight has been enhanced between NSW/Sydney as well as China. If NSWBF does not fulfil...
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