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

question 28

Multiple Choice

Morr Logistic Solutions Corporation has developed a new forklift-model QY-49-that has been designed to outperform 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 range of possible prices should Morr consider when setting a price for QY-49?

• A) $193,000 ≤ Value-based price ≤ $391,000
• B) $109,000 ≤ Value-based price ≤ $500,000
• C) $391,000 ≤ Value-based price ≤ $500,000
• D) $109,000 ≤ Value-based price ≤ $193,000

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Definitions:

Three-Dimensional Model

A theoretical framework that assesses a phenomenon along three different axes or dimensions to provide a comprehensive evaluation.

Basic Temperament

An individual's inherent predisposition to react to situations in a certain way, which is typically evident in early childhood and believed to be partly genetic.

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The quality of being sociable, friendly, or willing to engage in social interactions.