# Assume a product sells for \$100 per ton and Pittsburgh is the basing-point city for calculating transportation charges. Shipping from

## Question:

Assume a product sells for \$100 per ton and 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?

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Related Book For

## Contemporary Marketing

ISBN: 978-0324582031

14th Edition

Authors: Louis E Boone, David L Kurtz

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