Morr Logistic Solutions Corporation Has Developed a New Forklift-Model QY-49-That

question 388

Multiple Choice

Morr Logistic Solutions Corporation has developed a new forklift-model QY-49-that has been designed to out perform a competitor's best-selling forklift. The competitor's product has a useful life of 10,000 hours of service, has operating costs that average $3.70 per hour, and sells for $109,000. In contrast, model QY-49 has a useful life of 40,000 hours of service and its operating cost is $2.10 per hour. Morr has not yet established a selling price for model QY-49.From a value-based pricing standpoint what is QY-49's economic value to the customer over its 40,000 hour useful life?

• A) $500,000
• B) $193,000
• C) $146,000
• D) $391,000