Multiple Choice
Blauvelt Electronics Corporation has developed a new instrument-model GZ-29-that has been designed to outperform a competitor's best-selling instrument. Model GZ-29 has a useful life of 30,000 hours of service and its operating cost is $3.20 per hour.In contrast, the competitor's product has a useful life of 10,000 hours of service and has operating costs that average $5.60 per hour. The competitor's instrument sells for $149,000. Blauvelt has not yet established a selling price for model GZ-29.From a value-based pricing standpoint what range of possible prices should Blauvelt consider when setting a price for GZ-29?
A) $245,000 ≤ Value-based price ≤ $370,000
B) $370,000 ≤ Value-based price ≤ $519,000
C) $149,000 ≤ Value-based price ≤ $519,000
D) $149,000 ≤ Value-based price ≤ $245,000
Correct Answer:
Verified
Correct Answer:
Verified
Q77: Future costs that do not differ between
Q78: Quamma Corporation makes a product that has
Q79: Faustina Chemical Corporation manufactures three chemicals (TX14,
Q80: Hodge Incorporated has some material that originally
Q81: Swagger Corporation purchases potatoes from farmers. The
Q83: Algood Corporation manufactures numerous products, one of
Q84: Maccarone Corporation manufactures numerous products, one of
Q85: Ahrends Corporation makes 60,000 units per year
Q86: Ibsen Company makes two products from a
Q87: Otool Incorporated is considering using stocks of