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

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 range of possible prices should Morr consider when setting a price for QY-49?

A) $193,000 ≤ Value-based price ≤ $391,000
B) $109,000 ≤ Value-based price ≤ $500,000
C) $391,000 ≤ Value-based price ≤ $500,000
D) $109,000 ≤ Value-based price ≤ $193,000