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

question 200

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 GZ-29's economic value to the customer over its 30,000 hour useful life?

• A) $519,000
• B) $370,000
• C) $205,000
• D) $245,000

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Definitions:

Exclusive Rights

Specific rights granted to an individual or entity, allowing them to use, produce, or sell something without interference or replication by others.

Unintentional Error

Mistakes or omissions made without the intent to deceive, often due to oversight or misunderstanding.

Theft

The act of stealing; the wrongful taking and carrying away of the personal goods or property of another with the intent to deprive the rightful owner permanently.

DoS

Denial of Service, a cyber-attack where the perpetrator seeks to make a machine or network resource unavailable to its intended users.