Chasin Industries Incorporated Has Developed a New Robot, Model JB-32

question 307

Multiple Choice

Chasin Industries Incorporated has developed a new robot, model JB-32, that is designed to offer superior performance to a comparable robot sold by Chasin's main competitor. The competing robot sells for $11,000 and needs to be replaced after 1,000 hours of use. It also requires $1,000 of preventive maintenance during its useful life. Model JB-32'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 $1,000 of preventive maintenance during its useful life.From a value-based pricing standpoint what is the reference value that Chasin should consider when pricing model JB-32?

• A) $11,000
• B) $12,000
• C) $22,000
• D) $13,000

---

Definitions:

Breathing

The physiological process of inhaling oxygen and exhaling carbon dioxide from the bloodstream through the respiratory system.

Heart Rate

Heart Rate is the number of heartbeats per unit of time, typically expressed as beats per minute (BPM), a key indicator of physical exertion and overall cardiovascular health.

Serotonin

A neurotransmitter involved in regulating mood, appetite, sleep, memory, and learning.

Prozac

A brand name for fluoxetine, a selective serotonin reuptake inhibitor (SSRI) used to treat depression, obsessive-compulsive disorder, and several other psychological conditions.