Sally Fuller is a buyer for GWA publishing company. Her job is to purchase supplies and services for the printing of technical manuals. Her brother sets up a printing company, and Sally hires him to print most of these manuals for GWA. However, rather than actually printing the manuals, her brother hires another printer to do the work, then sells the printed manuals to GWA at a 50 percent markup. As a result, his prices are much higher than the other printers who serve GWA. This type of scheme is most likely a:

Question

Quizplus · Accepted Answer

This is a classic example of a pass-through scheme, where the brother's printing company is only acting as a middleman and not actually doing any printing work themselves. They are marking up the price of the printing service provided by another printer and selling it to GWA at a higher price. This results in higher costs for GWA and profits for Sally's brother.

Sally Fuller Is a Buyer for GWA Publishing Company