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Assume that a product sells for $100 per ton and that Pittsburg is the basing-point city for calculating transporation charges. Shipping from Pittsburg to a potential customer in Cincinati cost $10 per ton. The actual shipping costs of supplers in three other cities are $8 per on for suppliers A. $11 per ton for suppliers B, abd $10 per ton for supplier C. Using this information, answer the following questions:

a. What delivered price would a salespersn for Supplier A quote to the Cincinati customer?

b. What delievered price would a salesperon for Supplier B quote to the Cincinati customer?

c. What delievered price would a salesperson for supplier C quote for Cincinati customer?

d. How much would each supplier net (after subtracting actual shipping cost) per ton in the sales?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92165251

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