a) Cash flow
The purchasing power in Russia is lower than the one in Finland, but the customers will be more well-of in Russia, and for them our price is a synonymous with quality.So, the russian pices won't be really different than in Finland. So, the russian prices will be the same than Finland plus the transportation and the boarder fees. Finally, each price will increasearound 12%.
differential of prices of the Jazz Kaani collection (in euros)
| |table |bed |chair|sofa |
|Price in Finland with taxes |1063 |3232 |369 |3401 |
|Price in Finlandwithout |829,14 |2720,96 |287,82 |2652,78 |
|taxes | || | |
|Price in Russia without |928,64 |2823,48 |322,36 |2971,11|
|taxes | | | | |
|Price in Russia with taxes|1095,79 |3331,70 |380,38 |3505,91 |
In the first line on the table, we write the price in Finland with the Value AddedTax (VAT) of the different furnitures.
In the second line, we put the price in Finland less the finnish VAT (22%)
In the third line, we calculate the Russian price increase of 12% (boarder fees andtransportation fees). It give us the Russian price without the VAT.
In the fourth line, we have the price in Russia with VAT (18%) for the customers.
The prices in the first and the fourth line...