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

question 82

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 range of possible prices should Blauvelt consider when setting a price for GZ-29?

• A) $245,000 ≤ Value-based price ≤ $370,000
• B) $370,000 ≤ Value-based price ≤ $519,000
• C) $149,000 ≤ Value-based price ≤ $519,000
• D) $149,000 ≤ Value-based price ≤ $245,000

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Definitions:

Muscle Action

The process of muscles contracting and relaxing to produce movement in the body.

Glutamate

An important neurotransmitter in the brain that plays a key role in learning and memory.

Inhibitory Neurotransmitter

A type of neurotransmitter that decreases the likelihood of the neuron it acts upon to fire an action potential, thus inhibiting neural activity.

Brain

The organ located in the skull that controls thought, memory, emotion, touch, motor skills, vision, breathing, temperature, hunger, and every process that regulates our body.