Question

In: Operations Management

Saul Bowman contracted a boat. The boat was sold FOB Stuart, Florida. This means: A. Neither...

Saul Bowman contracted a boat. The boat was sold FOB Stuart, Florida. This means:

A. Neither the seller nor the buyer pay freight charges

B. Saul Bowman must may freight charges

C. The seller must pay freight charges.

D. None of the above

Solutions

Expert Solution

For FOB, the buyer pays the cost of marine freight transport, insurance, unloading, and transportation from the arrival port to the final destination. Hence the correct option is B. Saul Bowman must may freight charges.


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