Blauvelt Electronics Corporation Has Developed a New Instrument-Model GZ-29-That Has

question 82

Multiple Choice

Blauvelt Electronics Corporation has developed a new instrument-model GZ-29-that has been designed to outperform a competitor's best-selling instrument. Model GZ-29 has a useful life of 30,000 hours of service and its operating cost is $3.20 per hour.In contrast, the competitor's product has a useful life of 10,000 hours of service and has operating costs that average $5.60 per hour. The competitor's instrument sells for $149,000. Blauvelt has not yet established a selling price for model GZ-29.From a value-based pricing standpoint what range of possible prices should Blauvelt consider when setting a price for GZ-29?

• A) $245,000 ≤ Value-based price ≤ $370,000
• B) $370,000 ≤ Value-based price ≤ $519,000
• C) $149,000 ≤ Value-based price ≤ $519,000
• D) $149,000 ≤ Value-based price ≤ $245,000

---

Definitions:

Vitamin D

A fat-soluble vitamin essential for bone health and calcium absorption, also plays a role in immune function.

Folic Acid

A B-vitamin essential for the production and maintenance of new cells, particularly important during periods of rapid growth such as pregnancy to prevent neural tube defects.

HRM System

Human Resource Management System, a constellation of software and procedures for managing an organization's employee-related tasks, including recruitment, payroll, and performance management.

Organizational Environment

The set of external and internal factors that influence an organization's operations, including economic, technological, sociocultural, and legal elements, among others.