Wyler Logistic Solutions Corporation Has Developed a New Forklift-Model IM-40-That

question 107

Essay

Wyler Logistic Solutions Corporation has developed a new forklift-model IM-40-that has been designed to outperform a competitor's best-selling forklift. The competitor's product has a useful life of 40,000 hours of service, has operating costs that average $1.30 per hour, and sells for $139,000. In contrast, model IM-40 has a useful life of 120,000 hours of service and its operating cost is $0.80 per hour. Wyler has not yet established a selling price for model IM-40.
Required:
From a value-based pricing standpoint what is the differentiation value offered by model IM-40 relative to the competitor's offering for each 120,000 hours of service?

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Definitions:

Spice

Often a reference to synthetic cannabinoids, designer drugs that mimic THC, the active substance in marijuana, causing psychoactive effects.

K2

The second-highest mountain in the world, located on the China-Pakistan border, part of the Karakoram range.

THC

Tetrahydrocannabinol, the psychoactive compound found in cannabis that is responsible for its mind-altering effects.

Vaping

The act of inhaling and exhaling an aerosol produced by a vaping device, often containing nicotine and flavoring.