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Montecalvo Logistic Solutions Corporation has developed a new forklin-model Pl-28-that has been designed to outperform a competitor's best selling forklift. The competitor's product has a
Montecalvo Logistic Solutions Corporation has developed a new forklin-model Pl-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 $970 per hour, ond sells for $139,000. In contrast, model Pl-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 Pl-28 From a value-based pricing standpoint what is the differentiation value offered by Pl-28 relative to the competitor's offering for each 20,000 hours of service? Multiple Choice $223,000 $236,000 $84,000 $249,000
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