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

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Definitions:

Conversion

The unauthorized act of taking or using someone's property as if it were one's own, often leading to civil legal actions.

Fitness Watch

A wearable device designed to monitor and record various health and fitness metrics, such as steps taken, heart rate, and calories burned.

Cut-Price Store

A retail outlet offering goods for sale at significantly reduced prices, often specializing in discounts or bulk purchasing options.

Bailment

Represents a legal relationship in commercial law where physical possession of personal property is transferred from one person to another under the agreement that the property will be returned.