Montecalvo Logistic Solutions Corporation Has Developed a New Forklift-Model PI-28-That

question 69

Multiple Choice

Montecalvo Logistic Solutions Corporation has developed a new forklift-model PI-28-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 $9.70 per hour, and sells for $139,000. In contrast, model PI-28 has a useful life of 20,000 hours of service and its operating cost is $5.50 per hour. Montecalvo has not yet established a selling price for model PI-28.From a value-based pricing standpoint what is the differentiation value offered by PI-28 relative to the competitor's offering for each 20,000 hours of service?

• A) $223,000
• B) $236,000
• C) $84,000
• D) $249,000

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Definitions:

Factor Analysis

A statistical method used to identify underlying relationships among various variables by reducing data complexity.

Academic Aptitude

A measure of one's ability to perform well in academic settings, often assessed through standardized tests.

Analytical Intelligence

The ability to analyze, evaluate, judge, compare, and contrast situations; part of Sternberg's triarchic theory of intelligence.

Spearman's General Intelligence

The theory that cognitive abilities have a general factor (g) that influences performance on mental tests.