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

question 235

Multiple Choice

Tavis Robotics Corporation has developed a new robot-model FI-73-that has been designed to outperform 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 $5.55 per hour, and sells for $128,000. In contrast, model FI-73 has a useful life of 30,000 hours of service and its operating cost is $3.55 per hour. Tavis has not yet established a selling price for model FI-73.From a value-based pricing standpoint what range of possible prices should Tavis consider when setting a price for FI-73?

• A) $244,000 ≤ Value-based price ≤ $316,000
• B) $128,000 ≤ Value-based price ≤ $244,000
• C) $128,000 ≤ Value-based price ≤ $444,000
• D) $316,000 ≤ Value-based price ≤ $444,000

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Definitions:

Parents

Caregivers of offspring in their own species; in humans, typically comprised of a father and mother, who provide physical, emotional, and social support for their children.

Psychosocial Stages

A framework proposed by Erik Erikson that outlines eight stages of human development, each characterized by a specific challenge that individuals must resolve to develop a healthy personality.

Autonomy

The ability or capacity of a person to act independently and make decisions without external influence.

Shame and Doubt

A stage in Erik Erikson's theory of psychosocial development, occurring in early childhood, where kids learn to develop autonomy and self-confidence or experience shame and doubt about their abilities.