4) TURRONITIS S.A.

It is a Valencia-based company that produces delicious hazelnuts and

chocolate candies. The company decided to sell 200,000 boxes of candy products in Mexico.

To this end, the administrator signed an agreement with 5 import companies that involves a profit margin of 15 % over the price charged to retailers. The agreement fixes FOB prices (in Valencia) in Euro.

In addition, we know:

Freight and insurance Valencia-Veracruz: 1,202.02

Import duties: 9% over CIF value (Veracruz)

Land transport and delivery costs (approx.): $ 10

Downloading costs (Veracruz): $ 5. (The price of the freight Valencia-Veracruz does not include these costs)

Retailer margin: 25% over consumer price

Exchange rate: 1= $1.4975

What should be the FOB price (Valencia) in Euro that must be charged in order to allow for a consumer price of $2 a-piece in Mexico?