Freight-absorption pricing is especially useful to a firm that:
A) has low variable costs per unit.
B) has low fixed costs.
C) has fluctuating seasonal demand.
D) sells items with low market value.
E) uses a product penetration strategy.

Question

Quizplus · Accepted Answer

Freight-absorption pricing is especially useful to a firm that has low variable costs per unit because it allows the firm to absorb the cost of shipping without significantly increasing the overall cost of the product.

Freight-Absorption Pricing Is Especially Useful to a Firm That