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

question 180

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 differentiation value offered by GZ-29 relative to the competitor's offering for each 30,000 hours of service?

• A) $245,000
• B) $205,000
• C) $72,000
• D) $370,000

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Definitions:

Red Nuclei

Midbrain structures involved in motor coordination, notably part of the pathway for voluntary movements.

Auditory Pathways

The neural pathways that carry auditory information from the ears to the brain for processing and interpretation.

Motor Activities

Physical actions and movements generated by the muscle systems under control of the nervous system.

Sensory Information

Data obtained from the environment by sensory receptors, then transmitted to the brain for processing and response.