Suppose a Firm Selects Its Plant in St

question 20

Multiple Choice

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.In this pricing method,what is St.Louis called?

• A)basing-point
• B)FOB origin point
• C)multiple-zone location
• D)FOB freight location
• E)FOB destination point

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