Morr Logistic Solutions Corporation Has Developed a New Forklift-Model QY-49-That

question 131

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 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:

First Impressions

The initial perceptions or judgments formed about someone or something at the first encounter.

Memory

The cognitive process involving the encoding, storing, and retrieving of information over time.

Encoding

The method of transforming data into a format that can be retained in memory storage.

Storage

The retention of information or material in memory for future retrieval.