Tavis Robotics Corporation Has Developed a New Robot-Model FI-73-That Has

question 109

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 $4.60 per hour, and sells for $109,000. In contrast, model FI-73 has a useful life of 30,000 hours of service and its operating cost is $2.60 per hour. Tavis has not yet established a selling price for model FI-73.
-From a value-based pricing standpoint what is the differentiation value offered byFI-73 relative to the competitor's offering for each 30,000 hours of service?

• A) $60,000
• B) $187,000
• C) $278,000
• D) $155,000

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Definitions:

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price within a specified period.

Market Price

The current value at which an asset or service is being traded in the market.

Battery Packs

Collections of battery cells or batteries configured in a pack to provide power to electronic devices or systems.

Supply Curve

A visual depiction displaying the connection between a product's price and the amount of the product that suppliers are prepared to offer.