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. $109,000 ? Value-based price ? $193,000
B. $391,000 ? Value-based price ? $500,000
C. $193,000 ? Value-based price ? $391,000
D. $109,000 ? Value-based price ? $500,000
Answer: D
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