Hilfiger Industries Incorporated Has Developed a New Forklift, Model UH-40

question 233

Multiple Choice

Hilfiger Industries Incorporated has developed a new forklift, model UH-40, that is designed to offer superior performance to a comparable forklift sold by Hilfiger's main competitor. The competing forklift sells for $96,000 and needs to be replaced after 1,000 hours of use. It also requires $9,000 of preventive maintenance during its useful life. Model UH-40's performance capabilities are similar to the competing product with two important exceptions-it needs to be replaced only after 2,000 hours of use and it requires $13,000 of preventive maintenance during its useful life.From a value-based pricing standpoint what is model UH-40's economic value to the customer over its 2,000 hour life?

• A) $114,000
• B) $197,000
• C) $101,000
• D) $192,000

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Definitions:

Sedentary Lifestyle

A way of life that involves little physical activity, often associated with sitting for extended periods, which can lead to health issues.

Health-related Problems

Issues or conditions that impact an individual's physical well-being and require medical attention or intervention.

Aerobic Exercise

Physical activity that requires the pumping of oxygenated blood by the heart to deliver oxygen to working muscles, enhancing cardiovascular efficiency.

Base of Support

The area beneath an object or person that includes every point of contact that the object or person makes with the supporting surface.