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:

Gender Prejudice

Preconceived opinions or judgments about individuals or groups based on their gender, often resulting in discrimination or inequality.

Racial Prejudice

Preconceived judgments or biases against individuals based on their race or ethnicity.

Groupthink

A psychological phenomenon occurring within a group of people, in which the desire for harmony and conformity results in an irrational or dysfunctional decision-making outcome.

Group Polarization

Group polarization occurs when the attitude of a group becomes more extreme than the initial inclination of its members after group discussions.