When a manufacturer quotes the same price for the same merchandise to buyers in Cleveland,Ohio; Los Angeles,California; and Orlando,Florida the manufacturer is probably quoting the retailers a _____ price.
A) zone
B) basing point
C) FOB destination
D) FOB equal
E) FOB shipping point

Question

Quizplus · Accepted Answer

FOB destination pricing means the seller pays for the transportation of the goods to the destination point and charges the same price for the product regardless of the delivery location. This ensures that buyers in Cleveland, Ohio; Los Angeles, California; and Orlando, Florida would pay the same price for the merchandise.

When a Manufacturer Quotes the Same Price for the Same