Student Name: Question 4 Strategic Pricing (20 marks) Pacific Kitchen Supplies is considering introducing a new heavy-duty industrial kitchen oven called the S1500 model which it plans to sell to restaurants. Currently, the market leader is the model called T1200, which is sold by a competitor. T1200 currently sells for $6,000. The new features, or improved functionality, that S1500 has over the T1200 model includes faster heating, increased fan speed, reduced noise, more safety features, and larger capacity. Market research indicates that the improved functionality is valued at $800 by customers. Customers will need to incur $500 in installation costs for the S1500 model compared to $300 for the T1200 model. Engineering estimates have determined that S1500 will entail maintenance costs of $400 per year and will have a useful life of 8 years with a disposal value of zero. The yearly maintenance costs of the T1200 model is $450, with a useful life of 6 years and zero disposal value. Required: Question 4.1 Determine the economic value to the customer of the $1500 model. (Do not consider the time value of money.) (8 marks) Your Answer (expand the space as required)