Ludy Mechanical Corporation has developed a new industrial grinder$-$model YS$-48-$that has been designed to outperform a competitor's best$-$selling industrial grinder. Model YS $-48$ has a useful life of $100,000$ hours of service and its operating cost is $$0\mathrm{.}90$ per hour. In contrast, the competitor's product has a useful life of $20\mathrm{.}000$ hours of service and has operating costs that average $$1\mathrm{.}50$ per hour. The competitor's industrial grinder sells for $$169,000.$ Ludy has not yet established a selling price for model YS$-48.$

From a value$-$based pricing standpoint what is the differentiation value offered by YS$-48$ relative to the competitor's offering for each $100,000$ hours of service?

Multiple Choice

$$736,000$

$$60,000$

$$199,000$

$$259,000$