Tavis Robotics Corporation Has Developed a New Robot-Model FI-73-That Has

question 53

Multiple Choice

Tavis Robotics Corporation has developed a new robot-model FI-73-that has been designed to out perform a competitor's best-selling robot. The competitor's product has a useful life of 10,000 hours of service, has operating costs that average $4.60 per hour, and sells for $109,000. In contrast, model FI-73 has a useful life of 30,000 hours of service and its operating cost is $2.60 per hour. Tavis has not yet established a selling price for model FI-73.From a value-based pricing standpoint what is FI-73's economic value to the customer over its 30,000 hour useful life?

• A) $155,000
• B) $278,000
• C) $387,000
• D) $187,000

---

Definitions:

Wiki

A collaborative website or database where users can add, modify, or delete content, often focused on a specific topic.

Business Blogs

Online platforms where businesses share insights, updates, and engage with their audience, often to enhance visibility and establish authority in their field.

Far-Flung Audience

A widely dispersed or diverse group of listeners or viewers situated in various locations.

Instant Messaging (IM)

A means of sending real-time messages over the internet between two or more people.