Olivier Industries Inc

question 15

Multiple Choice

Olivier Industries Inc.has developed a new instrument,model AG-06,that is designed to offer superior performance to a comparable instrument sold by Olivier's main competitor.The competing instrument sells for $74,000 and needs to be replaced after 1,000 hours of use.It also requires $7,000 of preventive maintenance during its useful life.Model AG-06's performance capabilities are similar to the competing product with two important exceptions-it needs to be replaced only after 4,000 hours of use and it requires $14,000 of preventive maintenance during its useful life. From a value-based pricing standpoint what is the differentiation value offered by model AG-06 relative to the competitor's offering for each 4,000 hours of usage?

• A) $296,000
• B) $102,000
• C) $236,000
• D) $14,000

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Definitions:

Blotting Buffer

A solution used in molecular biology techniques to facilitate the transfer of DNA, RNA, or proteins onto a membrane for detection and analysis.

UV Light

Ultraviolet light, which is a type of electromagnetic radiation with a wavelength shorter than that of visible light but longer than X-rays, known for its ability to induce skin damage and other biological effects.

Radiographically Labeled

refers to substances that have been tagged with radioisotopes for tracking or imaging purposes using radiographic techniques.

Blotting Buffer

A solution used in molecular biology techniques to transfer proteins, DNA, or RNA onto a carrier so they can be detected or analyzed.