Blauvelt Electronics Corporation Has Developed a New Instrument-Model GZ-29-That Has

question 399

Multiple Choice

Blauvelt Electronics Corporation has developed a new instrument-model GZ-29-that has been designed to outperform a competitor's best-selling instrument. Model GZ-29 has a useful life of 30,000 hours of service and its operating cost is $3.20 per hour. In contrast, the competitor's product has a useful life of 10,000 hours of service and has operating costs that average $5.60 per hour. The competitor's instrument sells for $149,000. Blauvelt has not yet established a selling price for model GZ-29.From a value-based pricing standpoint what is the reference value that Blauvelt should consider when pricing model GZ-29?

• A) $205,000
• B) $149,000
• C) $245,000
• D) $447,000

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Definitions:

Lawyers

Professionals who are qualified to give legal advice and to represent individuals and organizations in legal matters.

Irresistible Impulse

A legal defense theory suggesting that a defendant was unable to control their actions due to mental illness, making them not responsible for the criminal behavior.

Fit of Passion

An emotional state of intense but brief uncontrolled expression of feelings, often resulting in rash actions or statements.

Insane

A term often used historically to describe individuals with mental illness or severe mental health conditions, now considered pejorative and replaced with more specific diagnoses.