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 $1500 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 $1500 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)