In: Operations Management
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
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.