Cables Electronics Corporation Has Developed a New Instrument-Model XG-75-That Has

question 262

Multiple Choice

Cables Electronics Corporation has developed a new instrument-model XG-75-that has been designed to outperform a competitor's best-selling instrument. Model XG-75 has a useful life of 40,000 hours of service and its operating cost is $2.80 per hour. In contrast, the competitor's product has a useful life of 20,000 hours of service and has operating costs that average $5.00 per hour. The competitor's instrument sells for $169,000. Cables has not yet established a selling price for model XG-75. From a value-based pricing standpoint what is the reference value that Cables should consider when pricing model XG-75?

• A) $269,000
• B) $281,000
• C) $338,000
• D) $169,000

---

Definitions:

Taxes

Mandatory financial contributions imposed by governments on individuals and businesses to fund public services and infrastructure.

Senate Watergate Committee

A select committee formed by the United States Senate in 1973 to investigate the Watergate scandal, involving a break-in at the Democratic National Committee headquarters and the subsequent cover-up by the Nixon administration.

Select Committee

A temporary or permanent legislative committee established to conduct investigations or consider specific issues not suitable for a standing committee.

Nuclear Option

A parliamentary procedure that allows the United States Senate to override a rule or precedent by a simple majority of 51 votes, rather than the two-thirds majority normally required.