Central Ice Machine Company is located in Omaha, Nebraska, sells Frick, Sullair, York, and Fes Fuller ammonia refrigeration parts. The company ships using FOB origin pricing. Which of the following statements about the shipment of a Frick reciprocating compressor is true?
A.
All buyers will pay no shipping costs because they are paid by Central Ice Machine.
B.
Central Ice Machine pays the same amount as the buyer no matter 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, and Central Ice Machine will pay none.
Answer: D
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Marketing
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