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PacWest Forest Products is a Seattle - based lumber producer that sells lumber to home builder across the country. When it sells to homebuilders in

PacWest Forest Products is a Seattle-based lumber producer that sells lumber to home builder across the country. When it sells to homebuilders in Georgia, where Georgia-Atlantic Lumber is a major competitor, what pricing method should PacWest use, and why?
a. FOB pricing since it can advertise a low price for lumber and the customer incurs the shipping costs.
b. Uniform delivered pricing, since the Seattle and Georgia homebuilders are likely to be equally price sensitive to PacWests products.
c. Freight absorption pricing, since the Georgia homebuilders are likely to be more price sensitive than Seattle homebuilders to PacWests products.
d. FOB pricing, since the transportation costs are incurred by the homebuilders regardless of which lumber supplier they buy from
e. They should select FOB pricing if Georgia-Atlantic also uses that pricing method, so that PacWest is able to keep up with its marketplace competition.

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