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please explain the math 6. Two similar and competing products are made by two manufacturers: one in Toronto and one in Montreal. Assume that delivery
please explain the math
6. Two similar and competing products are made by two manufacturers: one in Toronto and one in Montreal. Assume that delivery costs (transportation and handling) for this product are given below. J.K. Higginson: Logistics and Supply Chain Management, Fall 2023 53 a. The Toronto manufacturer sells the product for $2000 FOB Toronto factory. In total, how much will a buyer in Vancouver pay to purchase the product and to get it to his facility in Vancouver? How much will the Toronto manufacturer pay to get the product to the buyer's facility in Vancouver? b. The Montreal manufacturer sells the product under a national pricing system for $2200 delivered. In total, how much will a buyer in Vancouver pay to purchase the product and to get it to his facility in Vancouver? How much will the Montreal manufacturer pay to get the product to the buyer's facility in Vancouver? c. The Montreal manufacturer sells the product under a national basing-point pricing system for $2200 delivered, using Toronto as the basing point. I. In total, how much will a buyer in Vancouver pay to purchase the product and to get it to his facility in Vancouver? ii. How much will the Montreal manufacturer pay to get the product to the buyer's facility in Vancouver? The product never moves through Toronto! iii. How much freight absorption or phantom freight occurs in part c. ii. aboveStep by Step Solution
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