Silky Material Corporation in New Jersey sells fifty tons of fabric to Tattered Clothing,Inc.,in Ohio,"F.O.B.New Jersey." The cost of transporting the fabric to Ohio will be paid by

Question

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F.O.B. (Free on Board) indicates that the seller, Silky Material, is responsible for delivering the goods to a specified location, in this case, New Jersey. However, after that point, Tattered Clothing is responsible for all transportation costs and logistical arrangements. Therefore, the cost of transporting the fabric to Ohio will be paid by Tattered Clothing, Inc.

Silky Material Corporation in New Jersey Sells Fifty Tons of Fabric