Scenario 12.4
Use the following to answer the questions.
The BASF Chemical Company in Germany has developed a new rubberized coating. The product is used on cell phones and other hand-held electronic devices that give them protection from falls and scratches. BASF plans to market the product directly to businesses that manufacture the casings for these types of products. BASF currently uses a system of salespeople headquartered in Germany, while its primary business customers are in China.
-Refer to Scenario 12.4. If BASF were to price its products in barrels from the factory, before it is loaded on the carrier, this would be an example of pricing.
A) buy-back allowance
B) geographic
C) F.O.B destination
D) F.O.B. origin
E) base-point

Question

Quizplus · Accepted Answer

F.O.B. origin pricing means the buyer pays for transportation costs from the factory, as the price is set at the point of origin.

Scenario 12.4 Use the Following to Answer the Questions