Suppose a Firm Selects Its Plant in St

question 224

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.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