Central Ice Machine Co

Central Ice Machine Co. is located in Omaha, Nebraska, and sells Frick, Sullair, York, and Fes Fuller ammonia refrigeration parts. The company ships these parts using FOB origin pricing. Which of the following statements about the shipment of a Frick reciprocating compressor is most accurate?

A) Central Ice Machine will pay all shipping costs.
B) Central Ice Machine splits the shipping costs with its customers regardless of where the compressor is shipped.
C) It will cost Central Ice Machine more to ship to Charlotte, North Carolina, than to Topeka, Kansas.
D) A buyer in Albany, New York, will pay significantly more shipping charges than a buyer in Lincoln, Nebraska.
E) All buyers will pay the same shipping costs, regardless of the destination.

Correct Answer:

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