Tavis Robotics Corporation Has Developed a New Robot-Model FI-73-That Has

question 169

Multiple Choice

Tavis Robotics Corporation has developed a new robot-model FI-73-that has been designed to outperform a competitor's best-selling robot. The competitor's product has a useful life of 10,000 hours of service, has operating costs that average $4.60 per hour, and sells for $109,000. In contrast, model FI-73 has a useful life of 30,000 hours of service and its operating cost is $2.60 per hour. Tavis has not yet established a selling price for model FI-73.From a value-based pricing standpoint what is the differentiation value offered by FI-73 relative to the competitor's offering for each 30,000 hours of service?

• A) $60,000
• B) $187,000
• C) $278,000
• D) $155,000

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Definitions:

Imitate Behavior

The act of copying or mimicking the actions, mannerisms, or speech of another.

Rapid Mood Swings

Sudden and often unpredictable changes in mood, which can be attributed to various psychological or physiological conditions.

Cognitive Development

The progression of thinking, problem-solving, and learning abilities throughout a person’s life, starting from infancy.

Out of Sight

An expression meaning something is not visible or not present in the immediate area, often implying it is forgotten or ignored.