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Odette Manufacturers, located in Windsor, sells a product using delivered pricing. If sold under FOB Windsor Factory terms, the product would sell for $1200. Delivery
Odette Manufacturers, located in Windsor, sells a product using delivered pricing. If sold under FOB Windsor Factory terms, the product would sell for $1200. Delivery costs (transportation and other costs) are: from Windsor to Chatham: $150 . from Windsor to London: $300 . from Chatham to London: $250 Which of the following statements is/are true? More than one statement may be true. (1 mark) Statement #1: If Windsor Wholesalers sells the product for $1400 delivered, buyers in Chatham will incur $50 of phantom freight. Statement #2: If Windsor Wholesalers sells the product to a Chatham buyer for $1400 delivered, Windsor Wholesalers will incur $50 of freight absorption. Statement #3: If Windsor Wholesalers sells the product for $1400 delivered, buyers in London will incur $100 of phantom freight. Statement #4: If Windsor Wholesalers sells the product for $1400 delivered, buyers in London will incur $100 of freight absorption
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