Using the ‘top down’ export pricing model shown in Table 11.4, what is the FOB of a bale of sugar that Australian sugar growers should price up for retailers in China?

Use the following information within your calculations:

• VAT and sales taxes are applied in many overseas markets. For this example, there are no VAT or sales taxes in China.

• Retailers take a full margin on the selling price not the buying price.

• Assumes an exchange rate of AUD$1 = CNY4.76036.

• Assumes a freight rate of AUD$1200 for