Central Ice Machine Co

question 266

Multiple Choice

Central Ice Machine Co. is located in Omaha, Nebraska, and sells Frick, Sullair, York, and Fes Fuller ammonia refrigeration parts. The company ships these parts using FOB origin pricing. Which of the following statements about the shipment of a Frick reciprocating compressor is most accurate?

• A) Central Ice Machine will pay all shipping costs.
• B) Central Ice Machine splits the shipping costs with its customers regardless of where the compressor is shipped.
• C) It will cost Central Ice Machine more to ship to Charlotte, North Carolina, than to Topeka, Kansas.
• D) A buyer in Albany, New York, will pay significantly more shipping charges than a buyer in Lincoln, Nebraska.
• E) All buyers will pay the same shipping costs, regardless of the destination.

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Definitions:

Tenant-Days

A metric used in real estate to quantify the number of days a property is rented out.

Revenue Variance

The difference between the actual revenue earned and the budgeted or forecasted revenue.

Client-Visits

The number of times clients go to a business or service provider's location within a specified period.

Planning Budget

An estimate of the income and expenditure for a set period of time, used for setting financial targets and objectives.