Morice Industries Incorporated Has Developed a New Injection Mold, Model

question 254

Multiple Choice

Morice Industries Incorporated has developed a new injection mold, model IA-05, that is designed to offer superior performance to a comparable injection mold sold by Morice's main competitor. The competing injection mold sells for $54,000 and needs to be replaced after 1,000 hours of use. It also requires $7,000 of preventive maintenance during its useful life. Model IA-05's performance capabilities are similar to the competing product with two important exceptions-it needs to be replaced only after 2,000 hours of use and it requires $8,000 of preventive maintenance during its useful life.From a value-based pricing standpoint what is the reference value that Morice should consider when pricing model IA-05?

• A) $54,000
• B) $68,000
• C) $108,000
• D) $61,000

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Definitions:

Impulsivity

The tendency to act on a whim, displaying behavior characterized by little or no forethought, reflection, or consideration of the consequences.

Functional Connectivity

The temporal correlation between spatially remote neurophysiological events, often measured in brain imaging studies.

Cortex Mapping

A method used to identify the functions of different regions of the cerebral cortex.

Brain Plasticity

The ability of the brain to change and adapt as a result of experience, learning, or due to damage, by reorganizing its structure, functions, or connections.