Geographical Pricing Map B
-According to the Geographical Pricing Map B above,if the plant in Denver ships its products to all of the identified cities at different prices based on distance as indicated by the color-coded regions,it is most likely using which type of pricing?

Question

Quizplus · Accepted Answer

The Geographical Pricing Map B shows different color-coded regions for different prices based on distance. This indicates that the plant in Denver is using multiple-zone pricing, which involves dividing the market into different zones and charging different prices for each zone based on the distance from the plant. FOB origin pricing involves charging a single price for all destinations regardless of distance, while FOB destination pricing involves charging different prices based on the destination. Single-zone pricing involves charging a single price for the entire market, and basing-point pricing involves setting a price based on a specific location and adding the cost of transportation from that location to the destination. None of these pricing methods are indicated by the Geographical Pricing Map B, which clearly shows multiple zones and different prices based on distance.