Assume that a product sells for $100 per ton and thatPittsburgh is the basing-point city for calculating transportation charges. Shipping from Pittsburgh to a potentialcustomer in Cincinnati costs $10 per ton. The actual shipping costs of suppliers in three other cities are $8 per tonfor Supplier A, $11 per ton for Supplier B, and $10 per tonfor Supplier C. Using this information, answer the followingquestions:a. What delivered price would a salesperson for Supplier Aquote to the Cincinnati customer?b. What delivered price would a salesperson for Supplier Bquote to the Cincinnati customer?c. What delivered price would a salesperson for Supplier Cquote to the Cincinnati customer?d. How much would each supplier net (after subtractingactual shipping costs) per ton on the sale?
Assume that a product sells for $100 per ton and that
Pittsburgh is the basing-point city for calculating transportation charges. Shipping from Pittsburgh to a potential
customer in Cincinnati costs $10 per ton. The actual shipping costs of suppliers in three other cities are $8 per ton
for Supplier A, $11 per ton for Supplier B, and $10 per ton
for Supplier C. Using this information, answer the following
questions:
a. What delivered price would a salesperson for Supplier A
quote to the Cincinnati customer?
b. What delivered price would a salesperson for Supplier B
quote to the Cincinnati customer?
c. What delivered price would a salesperson for Supplier C
quote to the Cincinnati customer?
d. How much would each supplier net (after subtracting
actual shipping costs) per ton on the sale?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
