Essay
Assume that the buyer in Saudi Arabia has made other large purchases in the United States and is considering consolidating all of its purchases and loading them onto one large ship, which the buyer will charter. The buyer contacts HDT and, although acknowledging its commitment to buy FAS Doha, asks how much HDT would subtract from the $172,000 per truck price if the selling terms were changed to FOB HDT's Crown Point plant. How much of a cost reduction do you think HDT should offer the buyer? Under what terms and conditions?
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