Multiple Choice
Chasin Industries Inc.has developed a new robot,model JB-32,that is designed to offer superior performance to a comparable robot sold by Chasin's main competitor.The competing robot sells for $11,000 and needs to be replaced after 1,000 hours of use.It also requires $1,000 of preventive maintenance during its useful life.Model JB-32's performance capabilities are similar to the competing product with two important exceptions-it needs to be replaced only after 2,000 hours of use and it requires $1,000 of preventive maintenance during its useful life. From a value-based pricing standpoint what is the reference value that Chasin should consider when pricing model JB-32?
A) $11,000
B) $12,000
C) $22,000
D) $13,000
Correct Answer:
Verified
Correct Answer:
Verified
Q115: Whittenton Corporation manufactures numerous products,one of which
Q116: Yashinski Corporation manufactures numerous products,one of which
Q120: Assume that the company has not yet
Q121: Hilfiger Industries Inc.has developed a new forklift,model
Q122: Spach Corporation manufactures numerous products, one of
Q123: Alway Candy Corporation is implementing a target
Q124: Herrell Corporation manufactures numerous products, one of
Q212: Target costing involves adding a target profit
Q218: Companies that use value-based pricing establish selling
Q343: Napp Heavy Machinery Corporation has developed a