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

---

Definitions:

Lanolin

A natural grease obtained from sheep's wool, used as a moisturizer in skincare products.

Breastfeed

The act of feeding a baby or young child with milk from a woman's breast, which provides ideal nutrition and supports infant growth and development.

Clinical Breast Exam

A physical examination performed by a healthcare provider to check for breast lumps or other changes, as a method of detecting possible breast cancer.

BRCA Mutation

A genetic alteration in the BRCA1 or BRCA2 genes, which significantly increases the risk of developing breast and ovarian cancers.