The Lippincott Company,a manufacturer of canned vegetables,would like to sell the supermarket chain BuyRight on the idea of stocking a new line of pre-cooked salt-free vegetables.BuyRight informs Lippincott that in order to justify the cost of adding a new product line to its shelves,it will have to charge Lippincott $250 for every store in the BuyRight chain that stocks Lippincott's new product.What is this type of allowance called?

Question

Quizplus · Accepted Answer

This type of allowance is called slotting allowance, which is a fee charged by retailers to manufacturers to obtain shelf space for their products.

The Lippincott Company,a Manufacturer of Canned Vegetables,would Like to Sell