Hennig Plastics Equipment Corporation Has Developed a New Injection Mold-Model

question 368

Multiple Choice

Hennig Plastics Equipment Corporation has developed a new injection mold-model XP-30-that has been designed to outperform a competitor's best-selling injection mold. Model XP-30 has a useful life of 60,000 hours of service and its operating cost is $1.20 per hour. In contrast, the competitor's product has a useful life of 30,000 hours of service and has operating costs that average $2.10 per hour. The competitor's injection mold sells for $149,000. Hennig has not yet established a selling price for model XP-30. From a value-based pricing standpoint what is XP-30's economic value to the customer over its 60,000 hour useful life?

• A) $221,000
• B) $212,000
• C) $203,000
• D) $352,000

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Definitions:

Neurosecretory Neurons

Specialized neurons that produce and release hormones into the blood, bridging the nervous system and endocrine system.

Posterior Pituitary

The rear portion of the pituitary gland, which releases hormones such as oxytocin and vasopressin into the bloodstream.

Sympathetic Nervous

Part of the autonomic nervous system that prepares the body for physical activity by accelerating the heart rate, constricting blood vessels, and raising blood pressure.

Releasing Hormones

Hormones secreted by the hypothalamus that trigger the release of other hormones from the anterior pituitary gland.