The Apex Company sells $50,000 worth of merchandise to the Boston Group FOB origin pricing. The freight costs to ship the goods from the Apex Company to the Boston Group are $5,000. How much will the Apex Company charge the Boston Group for the shipment?
A) $55,000
B) Total charges will depend on the customer's zone.
C) $50,000
D) Total charges will be based on phantom freight.
E) $45,000

Question

Quizplus · Accepted Answer

FOB origin means the buyer (Boston Group) is responsible for the shipping costs, so Apex Company will charge only for the merchandise, which is $50,000.

The Apex Company Sells $50,000 Worth of Merchandise to the Boston