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:

Adult Height

The final height an individual attains after completing the natural growth process, typically measured in feet or meters.

Kg

Kilogram, a unit of mass in the International System of Units (SI), equivalent to approximately 2.20462 pounds.

Linear

Pertaining to or resembling a line, especially in relation to attributes like growth or decline that occur in a straight or nearly straight fashion.

Moderate

Of average intensity or quality; neither good nor bad.