Multiple Choice
Schimpf Industries Inc.has developed a new grinder,model WC-13,that is designed to offer superior performance to a comparable grinder sold by Schimpf's main competitor.The competing grinder sells for $24,000 and needs to be replaced after 1,000 hours of use.It also requires $2,000 of preventive maintenance during its useful life.Model WC-13's performance capabilities are similar to the competing product with two important exceptions-it needs to be replaced only after 4,000 hours of use and it requires $5,000 of preventive maintenance during its useful life. From a value-based pricing standpoint what range of possible prices should Schimpf consider when setting a price for model WC-13?
A) $24,000 ≤ Value-based price ≤ $99,000
B) $75,000 ≤ Value-based price ≤ $96,000
C) $24,000 ≤ Value-based price ≤ $96,000
D) $75,000 ≤ Value-based price ≤ $99,000
Correct Answer:
Verified
Correct Answer:
Verified
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