Morice Industries Incorporated Has Developed a New Injection Mold, Model

question 165

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 range of possible prices should Morice consider when setting a price for model IA-05?

• A) $54,000 ≤ Value-based price ≤ $114,000
• B) $54,000 ≤ Value-based price ≤ $108,000
• C) $60,000 ≤ Value-based price ≤ $114,000
• D) $60,000 ≤ Value-based price ≤ $108,000

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Definitions:

Academic Performance

A measure of a student's achievement in educational activities, often quantified through grades or test scores.

Dieting

The practice of eating food in a regulated manner to achieve or maintain a controlled weight.

Anorexia Nervosa

A disorder related to eating that involves significantly low body weight, a strong fear of weight gain, and a mistaken view of one's body size or form.

Distorted View

An inaccurate or biased perspective on reality, often influenced by mental health conditions or cognitive biases, leading to misinterpretation or misunderstanding of situations, events, or information.