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:

Flowchart

A diagram that depicts a process, system, or computer algorithm, typically using symbols to represent steps and arrows to show the flow direction.

Service Quality

Service quality is the degree to which a service meets the customer's expectations and needs, often considered a key factor in customer satisfaction and loyalty.

Responsiveness

The ability of a business or organization to quickly and effectively reply to customer inquiries, complaints, or needs.

Customer Relationships

The interactions and engagements a business has with its customers, aimed at building loyalty and long-term customer satisfaction.