Waec Model Questions Vol1 2024 Commerce Question 16

A Nigerian exporter ships 10,000 identical units of a product. The exporter wants to set a FOB price per unit (in US dollars) that will give a profit of ₦200,000 after the following costs are incurred: - Freight charge for the whole shipment: US$500. - Marine insurance is charged at 0.5% of the CIF value (CIF = FOB + freight + insurance). - Customs duty is 5% of the CIF value. - The exporter converts the total US$ received from the buyer into Naira at the official rate of ₦750 per US$, but the bank deducts a commission of 2% on the amount converted. Assuming the profit target is measured after all the above costs and the bank commission, what should be the minimum FOB price per unit (in US$, rounded to two decimal places) that the exporter must set?