Schimpf Industries Inc

question 142

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

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Definitions:

Employee Empowerment

The practice of giving employees the authority, tools, and resources to make decisions and contribute to the company's success.

Delegation

The process where a manager or leader assigns tasks and responsibilities to subordinates.

Delegatees

Individuals who are assigned or delegated tasks, responsibilities, or authority by someone else.

Completion

The act of finishing or bringing something to an end or final stage, achieving all its required or planned elements.