Central Ice Machine Company Is Located in Omaha,Nebraska and Sells

question 91

Multiple Choice

Central Ice Machine Company 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:

Pull Strategy

A marketing strategy that aims to create demand at the consumer level, encouraging the product to be "pulled" through the distribution channels.

Hybrid Strategy

A competitive approach that combines elements of both cost leadership and differentiation strategies to serve customers.

Purchase Order

A legal obligation to buy from a supplier a certain amount of product, at a certain price, to be delivered at a specified date.

Legal Obligation

A requirement established by law, a contract, or another form of legally binding agreement, that mandates a party to act or to refrain from acting in a certain manner.