Question

Wilkinson & Company sells plumbing supplies across the United States. Wilkinson uses Chicago as its central location for determining freight costs regardless of the city from which products are actually shipped. For example, a Dallas customer pays the freight cost from Chicago to Dallas even if the goods are shipped from Dallas. Wilkinson most likely uses ________ pricing.

Answer 1

The correct answer is: Basing Point Pricing.

Step-by-step explanation:

Basing Point Pricing is a system in which buyers of a product pay the basic price of the good plus a shipping fee that varies according to the location of the buyer. The shipping fee is charged to cover expenses for delivering heavy, bulky material that is usually expensive to send.