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

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Definitions:

"Don't Ask, Don't Tell"

A former policy of the United States military that allowed gay, lesbian, and bisexual personnel to serve as long as they did not openly reveal their sexual orientation.

Watergate Break-in

The 1972 illegal entry into the Democratic National Committee headquarters at the Watergate office complex, leading to a political scandal and the eventual resignation of President Richard Nixon.

Richard Nixon

The 37th President of the United States, serving from 1969 until his resignation in 1974, known for his role in the Vietnam War and the Watergate scandal.

White House Tapes

Audio recordings of conversations and meetings in the White House, famously associated with President Nixon's administration and the Watergate scandal.