Suppose a firm selects its plant in St.Louis as the location from where it will ship its products to all of the identified cities shown in Geographical Pricing Map C above.The MSRP of the product is $100 but the firm adds a freight surcharge to cover transportation/freight.This surcharge will vary according to the distance between the origin of the shipment-in this case St.Louis-and the destination or customer's location.What is the most likely pricing method this firm is using?
A) FOB origin pricing
B) multiple-zone pricing
C) single-zone pricing
D) basing-point pricing
E) FOB destination pricing
Correct Answer:
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Q250: Selecting one or more geographical locations from
Q254: Basing-point pricing refers to
A) selecting a single
Q275: Price discrimination refers to
A)the practice of charging
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Q289: Another name for freight-absorption pricing is
A)FOB factory
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Q356: Five pricing practices are closely scrutinized because
Q361: Vertical price fixing refers to
A)two or more
Q362: Consider Figure 14-9 above."A" represents which of
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