What issues are involved for these automakers in deciding whether to pass on higher fuel costs to consumers in the form of higher destination charges or to simply absorb these costs? Discuss this issue in terms of cost-based versus market-based pricing approaches.

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"Auto Makers Boost Charges for Shipping New Cars Because of Higher Fuel Costs," The Wall Street Journal, October 25, 2000, Sholnn Freeman. Overview DaimlerChrysler, Ford, General Motors, and Mitsubishi all have boosted "destination charges," which are the nonnegotiable freight charges that consumers pay on new vehicles, by 5 to 15 percent in order to cover higher fuel costs.