The purchase contracts have been negotiated in principle. The speaker supplier sells its products FOB Destination,...

  

Transcribed Image Text:

The purchase contracts have been negotiated in principle. The speaker supplier sells its products FOB Destination, Freight Collect and Allowed. The supplier of receivers only sells its products FOB Origin, Freight Collect. The remaining issue for the V transportation director is to evaluate the delivery options that her analyst recommended for each product and make a decision. Relevant information is provided in the following table: Manufactured in V purchase price Weight Dimensions Characteristics Freight Terms Option 1 Option 2 SPEAKERS Tijuana, Mexico $175 per set 28 pounds 30" (L) X 18" (W) x 18" (H) Sturdy, bulky, not easily damaged FOB Destination, Freight Collect and Allowed Weekly LTL delivery 200 sets $2,485 Cost per delivery Twice per month TL delivery 400 sets $2,946 Cost per delivery RECEIVER Manchester, New Hampshire $225 per unit 5 pounds 18" (L) X 8" (W) x 4" (H) Compact, vibration sensitive, theft risk FOB Origin, Freight Collect Weekly Ground delivery 200 units $2,169 Cost per delivery Twice per week airfreight delivery 100 units $2,411 Cost per delivery The purchase contracts have been negotiated in principle. The speaker supplier sells its products FOB Destination, Freight Collect and Allowed. The supplier of receivers only sells its products FOB Origin, Freight Collect. The remaining issue for the V transportation director is to evaluate the delivery options that her analyst recommended for each product and make a decision. Relevant information is provided in the following table: Manufactured in V purchase price Weight Dimensions Characteristics Freight Terms Option 1 Option 2 SPEAKERS Tijuana, Mexico $175 per set 28 pounds 30" (L) X 18" (W) x 18" (H) Sturdy, bulky, not easily damaged FOB Destination, Freight Collect and Allowed Weekly LTL delivery 200 sets $2,485 Cost per delivery Twice per month TL delivery 400 sets $2,946 Cost per delivery RECEIVER Manchester, New Hampshire $225 per unit 5 pounds 18" (L) X 8" (W) x 4" (H) Compact, vibration sensitive, theft risk FOB Origin, Freight Collect Weekly Ground delivery 200 units $2,169 Cost per delivery Twice per week airfreight delivery 100 units $2,411 Cost per delivery

Answer rating: 100% (QA)

Under the FOB Free On Board terms offered for each product V the transportation director bears certa... View the full answer