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Cherokee Cable Corporation, Sells Heavy Wire Cable to Large Construction

Question 255

Multiple Choice

Cherokee Cable Corporation, sells heavy wire cable to large construction companies around the country. Customers pay shipping from a central warehouse in Dallas. Recently, a new competitor in Atlanta has been taking away some of Cherokee Cable's southern customers. If Cherokee Cable wants to compete in those distant markets, but not increase the cost of its product to other customers, it would probably switch to


A) zone pricing.
B) specifying "F.O.B. Dallas" in its contracts.
C) uniform delivered pricing.
D) freight absorption pricing.
E) None of these would help Cherokee Cable Corporation with its problem.

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